Australia’s property market is undergoing a significant shift, with several suburbs seeing sharp drops in house prices. A mix of affordability pressures, increased housing supply, and changing buyer behaviour is reshaping the landscape, creating opportunities for buyers and challenges for sellers.
This downturn comes as the country navigates a cooling housing market after years of price growth. Domain’s December 2024 quarter report highlights some of the most affected regions, shedding light on areas where prices have fallen the most.
Sharp Declines in Key Urban Markets
The median house price in Sydney, which is still the most expensive housing market in Australia, fell by 0.1% for the first time in two years. Particularly heavily struck was the inner-northern suburb of Crows Nest, where unit prices fell by 22.1% to a median of AUD 818,000. This change reflects a larger pattern in which concerns about affordability are reducing demand in high-value sectors.
The Gold Coast also saw substantial reductions. In Biggera Waters, house prices declined by 22.4% year-on-year, now sitting at AUD 660,000. Nearby, Clear Island Waters recorded a 21.1% drop, bringing the median house price to AUD 1.4 million. These changes reflect shifting priorities among buyers, with affordability taking precedence over proximity to coastal attractions.
Regional and Smaller Markets Not Immune
Regional and suburban areas are not exempt from the nationwide trend.
In Melbourne, affordability improvements have been noted, particularly in areas like Chadstone, where unit prices dropped by 33.3% year-on-year to a median of AUD 505,000. The seaside town of Barwon Heads also experienced a notable 20.5% decline in house prices.
Even smaller markets like Warracknabeal in north-western Victoria have seen sharp declines, with house prices falling by 19.6%, bringing the median to AUD 198,000. Similarly, Denman Prospect in Canberra recorded a 22.2% drop in house prices, reflecting how local markets are feeling the pinch alongside major cities.
Opportunities and Challenges Ahead
These declining prices present opportunities for first-time buyers and investors to enter markets previously out of reach. However, for sellers, the current conditions may necessitate longer listing periods and reduced expectations.
| Suburb/Region | State/Territory | Price Type | Decline (%) | Median Price (AUD) |
|---|---|---|---|---|
| Crows Nest | NSW (Sydney) | Units | 22.1 | 818,000 |
| Biggera Waters | QLD (Gold Coast) | Houses | 22.4 | 660,000 |
| Clear Island Waters | QLD (Gold Coast) | Houses | 21.1 | 1,400,000 |
| Chadstone | VIC (Melbourne) | Units | 33.3 | 505,000 |
| Barwon Heads | VIC (Regional) | Houses | 20.5 | – |
| Warracknabeal | VIC (Regional) | Houses | 19.6 | 198,000 |
| Denman Prospect | ACT (Canberra) | Houses | 22.2 | 1,015,000 |
As the market adapts, the coming year could mark a turning point for Australia’s housing sector. Whether this trend continues will depend on broader economic factors, including potential interest rate changes and sustained affordability challenges.
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