Australia’s property market continues to grow, albeit more slowly, according to a new report.
NAB’s Australian Housing Market Update shows that nationally, dwelling values were steady in January, continuing a softer trend in housing conditions that was evident through most of last year, and now into 2025.
The annual growth trend has more than halved since moving through a cyclical peak in February last year, slowing to 4.3 per cent in January. The figures show that the overall national result was weighed down by the capital cities, where values fell 0.2 per cent. The combined regional markets were stronger, with values rising to new record highs with a 0.4 per cent lift over the month.
Three of the capital cities recorded a decline over the month, led by Melbourne with a 0.6 per cent fall, followed by the ACT and Sydney. The mid-sized capitals are still seeing growth, but conditions have eased there as well.
Brisbane and Perth recorded a clear and steady loss of momentum, especially in the detached housing sector where value growth has eased more noticeably.
Adelaide has shown a more resilient trend; although the pace of gains is slowing, Adelaide has led the growth tables over the past few months, taking over Perth’s top position.
Regional markets seem to be benefitting from a second wind in internal migration that is supporting demand. However, the trend has shifted from the heights of the pandemic where commutable lifestyle markets were standing out with the highest capital gains. The strongest regional housing markets are now centred in regional Queensland, with Townsville (up 25.8 per cent), Central Queensland (20.1 per cent) and the Mackay region (19.5 per cent) leading the annual growth tables.