While the headlines fixated on million-dollar suburbs in 2024/25, the strongest gains were posted by homes in the lower price bands across many capitals and regions. Below, we unpack the data, what drove it and how you can use these insights to shape your next move.
What the Numbers Actually Say
CoreLogic’s year-end read showed the most affordable quartile delivered the fastest growth across the combined capitals in 2024, up 9.8 percent, while the upper quartile rose 1.5 percent over the same period. This is the clearest single metric that the value end outperformed. Perth, Adelaide and Brisbane led the capital gains ladder in 2024, rising 19.1 percent, 13.1 percent and 11.2 percent respectively, while Melbourne dipped 3.0 percent. Adelaide was also buoyed by very low advertised stock, tracking about a third below the five-year average in mid-December, which helped sustain momentum. The pivot to the affordable tier was evident as early as Q1 2024, when lower-quartile values rose 3.1 percent versus 0.7 percent for the upper quartile.
Why Affordability Funnelled Demand Down the Price Curve
Higher rates kept a lid on borrowing capacity and nudged buyers towards cheaper price points. The RBA held the cash rate at 4.35 percent through June 2024 due to inflation, which made entry‑level suburbs and townhouses more popular. Simultaneously, rents reached record-high levels by early 2024, with the national median weekly rent rising significantly compared to the previous year. Put simply, repayments and rents both pushed decisions toward value. By early 2025, the gap between value tiers began narrowing in some cities, but the 2024 outperformance was already in the books.
Strategy for 2025 Buyers and Investors
If you’re buying in 2025, it’s best to start with a suburb-level lens rather than looking at an entire city. In Melbourne, look to value corridors with improving infrastructure and liveability where prices softened in 2024 but fundamentals are turning. In Adelaide, scarcity and population growth still matter, so speed, finance readiness and realistic price guides are key. For investors, weigh cash flow and upgrade potential carefully.
How ACUITY Can Help You Act, Not Just Observe
At ACUITY, our approach is built around clear goals, on‑the‑ground research and negotiation. We can help you prioritise suburbs where affordability, demand and liveability intersect, guiding you from shortlisting to settlement.
Ready to move from research to results? Talk to ACUITY about a tailored property strategy today. We can help you target the right suburb and structure the right offer so you can achieve a favourable outcome.
