First home buyers remain the most active group in the residential market with Perth and Adelaide expected to record Australia’s strongest house price growth, a new CBRE survey shows.

CBRE’s Residential Valuer Insights Q3 2024 surveyed CBRE’s residential valuers around Australia to provide expert insights on local and national trends.

Overall, in Q3 demand moderated nationally with 51% of valuers reporting a balanced market in recent months – up from 42% in Q2 and 44% in Q1. Demand was particularly strong in Perth, Adelaide and metropolitan Brisbane.

First home buyers remained the most active buyer type, continuing the trend from Q1 and Q2, and were most prevalent in metropolitan Melbourne, and the Gold Coast and Sunshine Coast. Local investors and upgraders were also active while interstate migrants and developers were least active.

Demand for houses, especially new and recently renovated properties, remained strong in Q3 with 47% of valuers saying this was the most in demand property type nationally.

A total of 59% of valuers expect house value growth in the next year, down from 70% in Q2. One third of valuers predict modest price growth of up to 5% for houses with the most growth expected in Perth, Adelaide and Brisbane Outer Metro.

In relation to apartments, 44% of valuers expect to see an increase in value over the next 12 months, while 41% expect prices to remain stable. The highest growth is expected in Perth, Brisbane Metro and Brisbane Outer Metro.

Kat Hale, CBRE’s Residential Valuations National Director, said while demand had moderated this quarter, seasonal change will likely result in more activity in most markets. 

“As we head into Spring, we’re anticipating increased listings nationally,” Ms Hale said. “While demand to purchase has remained strong in Perth, Adelaide and Brisbane metro, we are seeing softer demand in Melbourne and Canberra.

“First home buyers have remained the most active buyers nationally and we are seeing less demand from investors in Victoria, which is likely in part driven by recent tax changes in that state. Buyers are still preferring new or recently renovated properties, with less demand for properties in secondary locations.”

CBRE’s Pacific Head of Research, Sameer Chopra said the survey showed that the market continues to see price support, even as future supply (listings) increases over the next 12 months. 

“It’s not surprising to see demand from first home buyers remains robust nationally. The recent changes to tax obligations for investors in Victoria is skewing demand towards first home buyers in Melbourne.” 

View the full report here.

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