Reflecting on 2024
As 2024 comes to an end, Perth’s property market remains a beacon of strength, defying national trends. Let’s recap this year’s highlights and look forward to 2025, a year that promises opportunities for buyers, investors, and homeowners alike.
Interest Rates Held Firm
Throughout 2024, the Reserve Bank of Australia (RBA) maintained the cash rate at 4.35%. This stability provided much-needed relief for borrowers. Headline inflation fell to 2.8% in the September quarter, a significant improvement from 2022’s peak, but underlying inflation (trimmed mean) remained elevated at 3.5%, above the RBA’s target.
The RBA also adopted recommendations from its 2023 review, including reducing the number of rate-setting meetings from 11 to 8 annually and introducing post-meeting press conferences to improve transparency.
Perth Leads Property Price Growth
While national property price growth slowed to just 0.1% in November—the weakest result since January 2023—Perth recorded a standout year with a 21% year-on-year price increase.
This growth is driven by strong demand and limited supply, with listings down more than 40% compared to the five-year average. Other cities showed mixed results: Adelaide (14%) and Brisbane (12.1%) also posted strong gains, while Melbourne (-2.3%) and Canberra (-0.1%) saw declines.
For deeper insights, explore the CoreLogic Home Value Index and ABC’s property update.
Government Housing Incentives Rolled Out
The Federal Government allocated $5.5 billion for its Help to Buy Scheme, a shared equity initiative aimed at assisting low- and middle-income Australians. Buyers can receive up to 40% of the purchase price for new homes and 30% for existing properties, with a minimum 2% deposit requirement and no lenders’ mortgage insurance.
Additionally, the First Home Guarantee allowed eligible buyers to secure a home loan with as little as 5% deposit, backed by Housing Australia. These measures were complemented by tax cuts and a $300 energy bill rebate, aimed at easing cost-of-living pressures.
Learn more about these schemes from the Help to Buy overview and the ABS affordability data.
Rental Market Stabilized
Following years of rapid rental increases, 2024 saw a cooling in many cities, including Perth. This was driven by shifting rental demand due to intergenerational living, shared housing, and lower migration rates. Nonetheless, Perth rents remained strong compared to historical levels.
What’s Ahead in 2025
Interest Rate Cuts on the Horizon?
The RBA’s first meeting of 2025 is set for February 17-18, and speculation is rife about a potential cash rate cut. While some analysts predict a February cut, others believe rates will drop by May, depending on the December quarter inflation figures, due to be released in late January.
Stay updated on rate changes through the RBA Media Centre.
Perth to Lead Property Price Growth Again
Economists forecast Perth will continue to outperform in 2025, while national price growth may moderate. SQM Research predicts national housing prices will rise between 1-4% next year, assuming inflation remains steady and rates ease mid-year.
Federal Election to Shape Housing Policies
The 2025 federal election, expected by May, could bring further housing reforms. The Coalition has proposed allowing first home buyers to use up to $50,000 of their superannuation for a deposit, a policy likely to influence the market.
Planning Your Next Move in 2025?
With interest rates likely to fall and government initiatives in place, 2025 could be the ideal year to buy, refinance, or invest in Perth’s property market. At Fox Mortgages, we’re here to help you navigate these opportunities with expert advice and tailored solutions.
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Let’s make 2025 your year for property success. Contact us today to get started!
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