The gap between Australia’s fastest- and slowest-growing capital city housing markets is finally narrowing, new analysis from REA Group senior economist Angus Moore shows.
PropTrack data shows that national prices are up 3.2% in the six months since December, with Adelaide seeing the strongest growth at 4.2%, while Melbourne is the slowest at 2.4%.
As the graph below shows, that’s a far narrower range than during 2023 and 2024, when markets like Perth and Brisbane surged well ahead of Sydney and Melbourne.
That’s now changed. Mr Moore points to eroded affordability in those once-cheaper cities as a key reason for the slowdown.
“Brisbane, Adelaide and Perth had been relatively affordable markets coming in to the pandemic; but with prices having grown circa 90% in those cities since early 2020, that is no longer the case,” he said.
Looking ahead, Mr Moore believes rate cuts will support further growth in Australia’s property markets, but cautions growth will likely remain modest while affordability remains tight.
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