Top Performing Locations during FY2024
The Winter 2024 Edition of the Price Predictor Index by Hotspotting brings promising news for the property markets in Melbourne and Regional Victoria, while highlighting the stability of Adelaide and South Australia.
Melbourne: A Market Ready to Rebound
The Melbourne property market is set for better price growth in 2024 after declining in 2022 and experiencing a slow recovery during 2023. Although the median house price only rose by 3% in the 12 months up to May, a pickup in sales at the end of 2023 and early 2024 suggests a positive outlook.
- Sales Activity Revival: Late 2023 and early 2024 witnessed a revival in transactions, supported by a strong economy and a growing population. Sales volumes grew by 8% in Q1 2024 compared to the same period in 2023, signaling a resilient market recovery.
- Economic and Population Growth: Melbourne’s economic stability and high population growth are crucial factors contributing to the anticipated market recovery. The city’s ability to attract new residents and businesses underpins its long-term property market strength.
Regional Victoria: Signs of Recovery
Regional Victoria, known for its affordability and lifestyle appeal, is showing strong signs of market recovery. After a stellar 2021 followed by a downturn in 2022, the market began to revive in late 2023 and continued this positive trend into early 2024.
- Market Performance: Notably, 40% of locations in Regional Victoria are now classified as rising, recovering, or consistent markets. Areas like Latrobe Valley, Bendigo, Campaspe, and Grampians show consistent sales levels and signs of potential price growth.
- Lifestyle, Affordability, and Economy: The affordability and quality of life in Regional Victoria, along with rising job demand, continue to attract buyers and investors, contributing to its market resilience and growth potential.
Adelaide and South Australia: Consistent Performers
Adelaide and South Australia continue to demonstrate strong property market performance. Despite a decrease in the number of available dwellings in Adelaide, sales activity remains vigorous, reflecting a robust market with excellent development prospects.
- Adelaide: Adelaide’s property market remains a national leader in price growth, showing remarkable consistency despite fluctuations in stock levels. Sales activity is 8% higher than a year ago, despite a 12% annual decline in property listings. This stability is highlighted by a steady range of 4,300 to 5,900 transactions over the past nine quarters.
Additionally, only 18% of suburbs in Adelaide are classified as declining markets, with 31% showing positive trends. The Playford LGA has shown remarkable capital growth during FY2024, being awarded by CoreLogic as one of the Top 10 locations with the highest 12-month value growth in Greater Adelaide. - South Australia: Regional South Australia is attracting strong investor interest due to its affordability and impressive growth. The Home Price Index has seen a significant rise of 67.1%, making it a compelling market.
One of the areas showing strong market signs in South Australia is Victor Harbor, ranked as consistent by the Hotspotting Price Predictor Index and awarded by CoreLogic as one of the Top 10 locations with the highest 12-month value growth in South Australia.
As the property market evolves, Melbourne and Regional Victoria are set to experience a significant boom, driven by increased sales activity and economic growth. Meanwhile, Adelaide and Regional South Australia continue to demonstrate strong market fundamentals, ensuring their place as consistent performers in the Australian property landscape.
The insights from the Price Predictor Index – Winter 2024 Edition highlight the dynamic nature of these markets and the opportunities they present for buyers and investors, nominating these areas as some of the winners in the winter property market.
Projects
