Australian Residential Valuer Insights Q4 2024

In the fourth release of our Residential Valuer Insight series, we can now gain a detailed understanding of the evolving trends within Australia’s Residential Property Market over the past year. CBRE’s Residential Valuers outline current market demand, buyer types, supply (listings) and future value expectations. For Q4 2024, our Valuers report: 

• Demand to acquire residential has remained resilient, with nuances: 34% of CBRE Valuers indicated ‘strong’ to ‘very strong’ demand and nearly half reported “moderate” demand in their local markets. Demand to purchase is strongest in Adelaide and Perth, while softer demand is evident in Melbourne.
• Demand by property type: Throughout 2024, recently renovated properties, new houses, and houses have experienced increased demand. Softer conditions prevail for unrenovated properties and properties in secondary locations.
• Upgraders/First home buyers: Unlike previous quarters, the most active buyer type was reported as upgraders, followed by first home buyers. Local investors and down–sizers are also active, while developers and recent overseas migrants are less active.
• House values next 12 months: 55% of Valuers expect house value growth in the next year, down from a peak of 78% in Q1. The highest growth is expected in Perth and Adelaide. A quarter of Sydney Metro Valuers expect over 5% growth over the next 12 months.
• Apartment values next 12 months: 38% of Valuers expect an increase in apartment values, with the highest conviction being for Brisbane Metro, Perth, and the Gold and Sunshine Coasts. Nationally, twice as many Valuers expect value growth vs value decline.
• Vacant land values next 12 months: 49% of Valuers expect an increase in vacant land values with the most growth expected in Adelaide, Perth, and Brisbane Metro.
• Future demand: Over the coming year, fewer Valuers expect demand to increase. Digging deeper, the strongest demand is expected in Sydney Metro, Sydney Outer Metro, and Melbourne Metro.
• Future supply (listings): Two thirds of Valuers expect stock available to increase in the next 12 months, the highest so far this calendar year. Canberra and Sydney Metro is where most supply is anticipated.