Australian Residential Valuer Insights Q2 2024

Each quarter, we poll CBRE’s Residential Valuers to outline current market demand, buyer types, supply (listings) and future value expectations. For Q2 2024, our valuers report:

• Demand has remained strong: 13x as many Valuers see ‘strong’ to ‘very strong’ demand compared to ‘soft’ or ‘very limited’. Demand to purchase is particularly strong in Perth, Adelaide, and the Gold and Sunshine Coasts. Softer demand is evident in Tasmania, Melbourne Outer Metro, and ACT.
• Demand by property type: As in the previous quarter, Valuers see demand as being the strongest for houses and recently renovated properties. Softer conditions prevail for unrenovated properties and vacant land.
• First home buyers/Local investors: The most active buyer types were reported as first home buyers and local investors. Upgraders and down–sizers are also active. Developers are less active. 
  
• House values next 12 months: 70% of Valuers expect home value growth over the next 12 months. The highest conviction is for Perth, Adelaide and Sydney Metro, with a higher share expecting over 5% increase. 
• Apartment values next 12 months: More Valuers expect apartment value growth over the next 12 months than in Q1 2024, with the highest conviction in Perth, Brisbane Metro, and Adelaide. Nationally, over 4x as many valuers expect price growth vs price fall.
• Vacant land values next 12 months: 57% of Valuers expect vacant land values to increase with most growth expected in Perth, Adelaide, and Sydney Metro.
• Future demand: A significantly larger percentage of Valuers expect demand to increase in the next 12 months than decrease.
• Future supply (listings): There is scope for increased supply (listings) within the next 12 months, with 46% expecting increase and 8% expecting a decrease (Under Supply).