Brisbane and Perth Defy Australia’s Property Market Slowdown in 2024
In a dramatic contrast to the general slowing of Australia’s property market, Brisbane and Perth are experiencing significant price surges, much to the concern of potential homebuyers in these regions. According to Sue Williams in her article, “Australia’s 2024 property market: Prices slow across Australia – except in Brisbane and Perth,” these two cities have seen property prices skyrocket at an alarming rate, with Perth properties increasing by $571 per day and Brisbane by $417 per day last quarter.
Dr. Nicola Powell, Domain’s chief of research & economics, highlighted the unique situation in these cities. “While price rises in most capital cities are losing momentum, in Perth and Brisbane, they’re doubling. Perth is having another heyday, reminiscent of the mining boom, and Queensland is still seen as a strong lifestyle location,” she stated. This phenomenon is largely driven by a stark under-supply of properties coupled with strong population growth, making these markets highly competitive and increasingly expensive.
The surge in Perth and Brisbane comes as other major cities like Sydney, Melbourne, and Adelaide see a moderation in their property price increases. Melbourne, for instance, has shown signs of recovery with a 1.7% rise in house prices, the strongest quarterly rise in over two years. Meanwhile, Sydney’s housing market has shown a pullback, especially in pricier areas such as the eastern suburbs and northern beaches. Simon Pilcher of Pilcher Residential observed a balancing of supply and demand in Sydney. “That’s rebalancing supply and demand, and demand has fallen too. But while it’s going to be a little bit quiet for the next month, spring is around the corner, so we’ll see what happens then,” Pilcher noted.
On the other hand, Brisbane’s property market is not just thriving but also evolving culturally. Paul Arthur, chief executive of Queensland Sotheby’s International Realty, shared his insights on Brisbane’s growth. “But now Brisbane is growing and maturing beautifully and has much more sophisticated restaurants, stores, hotels, and infrastructure. It’s becoming quite a sexy little city and giving so many more people the appetite to relocate there,” he said, underscoring the city’s appeal beyond just the housing market.
In Perth, the situation is similarly robust, with houses selling for record amounts, driven by both economic health and relative affordability. Peter Gavalas of Resolve Property Solutions in Perth remarked on the frenzy in the local market: “We’re now seeing houses sell for ridiculous amounts of money. People are desperate and don’t want to miss out and we’re seeing a lot of big cash offers. That’s going to continue to push up prices.”
As the country watches these two cities defy broader market trends, the question remains whether this growth is sustainable in the long run or if it sets the stage for a potential bubble. As the rest of Australia’s property market cools, all eyes will be on Perth and Brisbane as they navigate these uncharted waters in the ever-volatile realm of real estate.
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