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Australian Secure Capital Fund - Market Update Australian Secure Capital Fund January 2025 CoreLogic's Home Value Index (HVI) recorded a 0.1% decline in December, the first national drop in nearly two years. This slight downturn capped a robust growth period from February 2023 to October 2024, where property values showed remarkable resilience despite high interest rates, cost of living pressures, and reduced borrowing capacity. The national decline was mirrored in the quarterly figures, with values also falling 0.1%, signalling a shift in momentum. Five of the eight capitals recorded declines between July and December, although Adelaide and Perth continued to perform strongly. Adelaide overtook Perth as the best-performing market in the December quarter, with values rising 2.1% compared to Perth's 1.9% and Brisbane's 1.3%. In annual terms, Australian home values rose 4.9% in 2024, adding approximately $38,000 to the median home value. The mid-sized capitals led the charge, with Perth (+19.1%), Adelaide (+13.1%), and Brisbane (+11.2%) achieving double-digit growth. However, Melbourne, Hobart, and the ACT recorded declines over the year, with values falling -3.0%, -0.6%, and -0.4%, respectively. Looking ahead, as highlighted in our market update above, anticipated rate cuts in 2025 should help stabilise the market, while a weaker Australian dollar may attract international investment, particularly in property. Regional markets, which outperformed the capitals with a 6.0% annual growth, are expected to remain a bright spot, driven by strong performances in WA, SA, and QLD. Property Values as at 31st of December 2024 |
