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Printed: 20 February 2025 7:39 AM

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4 Feb 2025 - Australian Secure Capital Fund - Market Update

By: Australian Secure Capital Fund

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

Quick Insights

Thinking of buying a bigger home in 2025? 

With house prices softening in Sydney and Melbourne, buyers looking to upgrade could find great opportunities this year. Experts predict that expected interest rate cuts in 2025 will bring renewed confidence to the market, though competition is currently lower, giving upgraders a chance to secure their dream home before demand picks up.

Source: Australian Financial Review

What's shaking up the housing market in 2025?

Lower interest rates, easing inflation, and slowing overseas migration are set to shape Australia's housing market this year, with potential for mild recovery following a shallow downturn. Explore how economic shifts and lending policies could impact values, demand, and construction.

Source: Corelogic

Author: Filippo Sciacca, Director - Investor Relations, Asset Management and Compliance

December Edition


Funds operated by this manager:

ASCF High Yield Fund, ASCF Premium Capital FundASCF Select Income Fund

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