Property flat to start ’24

Home prices in capital cities have remained steady into the new year but a report predicts appreciation in 2024 despite affordability sitting at a threedecade low.

PropTrack’s newly released Home Price Index report found national home prices were “relatively flat” throughout January and only lifted by 0.02 per cent following a small drop in prices in December.

However, the price of dwellings in regional areas across the country experienced modest growth in January.

In Sydney, prices fell by 0.04 per cent, 0.09 per cent in Melbourne and 0.13 per cent in Adelaide and Canberra, while Hobart and Queensland experienced growth of 0.09 per cent and 0.17 per cent, respectively.

The report also reveals prices in regional areas grew slightly throughout the first month of the year, with regional South Australia rising by 0.24 per cent and Western Australia leading the pack with a 0.25 per cent increase.

PropTrack senior economist and report author Angus Moore said Adelaide experienced strong performance in 2023 and would probably continue this “momentum”, given it’s “relative affordability”.

He said Perth had started the new year as the “strongest performing property market around Australia” and remained the most affordable state in Australia.

Prices in regional Victoria have increased slightly, by 0.06 per cent, but have remained relatively stable since September.

Queensland is the only regional area to have had a decline in growth (down 0.2 per cent) following a period of strong growth, according to the report.