Australia’s housing market has seen a shift in buyer activity this year, with both affordable hotspots and high-end suburbs posting strong price growth as interest rate cuts improve borrowing power, according to the latest PropTrack data.
While regional and lower-cost areas remain key growth zones, buyers are also returning to premium suburbs, with the two-speed market of 2023 starting to converge as rate cuts boost purchasing confidence.
“The last few years have really been kind of two markets where Sydney and Melbourne were not growing particularly quickly... while Adelaide, Perth and Brisbane were growing extremely quickly,” said Angus Moore (pictured), REA Group executive manager of economics.
“Over the first six months of this year we’re seeing a fairly similar pace of growth across all those cities.
“We’re seeing a bit more of a convergence in terms of that pace of growth, and that reflects smaller markets slowing down but also Sydney and Melbourne starting to grow a bit more solidly.”
PropTrack’s latest Home Price Index showed national home prices rose 0.4% in June, the sixth consecutive monthly gain. Growth occurred across all capital cities, with Sydney and Melbourne now contributing to national gains after a slower start to the year.
Some of the fastest-growing suburbs in 2024 are small regional markets where affordable entry points and strong rental yields are attracting investors.
In Victoria, investor interest pushed up prices in Mildura, Merbein, and Red Cliffs, all rising 6% in six months, PropTrack data showed.
“For winter, it’s hot,” said Mark Thornton, One Agency Mildura principal. “Naturally when you have a growing market, everyone wants in.”
In Sydney’s outer south-west, Menangle recorded a 16% jump in median house value to about $1.2 million, driven by new housing estates. Similar growth was seen in Claymore (up 12%) and Austral (up 11%), where demand for turnkey homes is strengthening amid high construction costs.
“Mortgages have been very costly, affordability has been a real constraint for buyers which has to some extent favoured more affordable areas,” Moore said.
While outer areas attracted affordability-focused buyers, inner-city premium suburbs also recorded solid price growth:
“As rates start to fall, we might see more expensive areas start to perform a little better,” Moore said. “Interest rates coming down is going to be a tailwind for home prices broadly but may help that mid-to-top end a little bit more.”
Queensland dominated unit price growth:
“A lot of the locals weren't able to purchase at the time... now they’ve swallowed the hard pill that prices are what they are,” said Elise Carrick of The Agency Rockhampton.
PropTrack data also tracked enquiries per listing to identify the suburbs in highest demand:
“We are definitely still seeing a high volume of buyers coming through, however not the highest amount of buyers committing to purchasing,” said TRG director Oliver Lavers.
“If the property is flawless... and priced attractively, then there is going to be multiple buyers bidding for the property.”
Moore said recent rate cuts, along with the prospect of more to come, could help ease affordability pressures and make higher-priced suburbs more accessible to buyers.
According to a July Reuters poll, all four major banks and 30 economists expect the Reserve Bank to cut the official cash rate by 25 basis points in August, bringing it to 3.6%. A further cut is forecast for the fourth quarter, with most economists expecting rates to fall to 3.1% by March.
Properties are also selling faster in certain areas—often a sign of tight supply and strong demand.
In NSW, quick sales were seen in:
For units, Balgowlah, Freshwater, Bronte, and Clovelly – all in Sydney’s eastern and northern beaches – topped the list.
“Adelaide has seen a big fall in how long homes of all types are selling... so homes have been selling quickly,” Moore said.
“If you want to live in those expensive areas but affordability is biting... more-affordable homes like units become more attractive.”
