Where were the biggest property price gains and falls of 2024?

Four in five Australian reported price rises through 2024 and while regional Queensland topped the list, most of Victoria slumped | SEE HOW YOUR AREA PERFORMED

Joel Shiells with his two boys Noah and Henry, aged 14 and 11, at their new home in North Ward, Townsville. Picture: Scott Radford-Chisholm / The Australian

The price of homes in Townsville and central Queensland surged by almost $100,000 through 2024, while ever-diverging market conditions caused all but two Victorian regions to slump.

Population growth and strong economic fundamentals caused home prices in the north Queensland coastal city of Townsville to be the fastest growing region in Australia in 2024, with gains of 26.3 per cent, according to new analysis by PropTrack for The Weekend Australian. The strong result beat central Queensland – encompassing the regional hubs of Gladstone and Rockhampton – which collectively rose 22.9 per cent, and Perth’s northeastern and northwestern suburbs (each up more than 20 per cent).

Founder of buyers agency Propertyology, Simon Pressley, said strong mining conditions had helped the local economies in each of those top performing areas.

“It’s not a mining town story but it’s an economic story, with mining being a key general industry,” he said. “Health is strong, retail is strong and they’ve got universities in each of those cities.

“There is also stuff housing supply there and there will likely be stuff all supply there for some years yet.”

Townsville local Joel Shiells said he and his wife, Natalie, had used the strong growth to sell their home and buy a two-bedroom Queenslander at auction with plans to renovate.

“If you’re smart with the equity, can use that, then buy,” Mr Shiells said.

“It is a shock when you were doing it, say, five years ago, when the market was low. Knowing how much I sold for 10 years ago compared to now is a shock.”

Perth was the strongest capital city market, with southern coastal markets of Mandurah and Bunbury also rising more than 16 per cent. Adelaide and Brisbane locations also featured in the top 20 growth regions.

While most of the country recorded price gains of varying degrees through 2024, one in five regions fell, including South Australia’s Barossa–Yorke–Mid North and Darwin.

But the biggest declines were witnessed in Melbourne’s affluent inner east and Victoria’s Mornington Peninsula, which slumped 5.3 per cent and 5 per cent respectively last year.

Only two areas in the state – the capital’s southeast and regional northwest – managed meagre gains.

REA Group economist Anne Flaherty said investors had flocked to Perth but fled Melbourne, which was being reflected in price changes.

“In Melbourne we’ve seen an underperformance over the past five years,” she said.

“I think one of the reasons for that is that Victoria has been relatively better over the recent years in ensuring enough new homes are built … the shortfall here is not as severe as we’re seeing in some of the other capitals.

“The other thing is that we’ve seen an investor exodus that has been going on for well over five years now. Whereas in a market like Perth, you’ve got first homeowners, subsequent homeowners and investors all competing.”

Ray White Townsville managing director Giovanni Spinella said investors made up about a third of the market, with upgraders and “transitional” new buyers to the region filling out much of the remaining buyer pool.

Mr Pressley said investors could still find good opportunities in regional Australia despite missing some of the strong growth. “There’s literally nowhere in Australia that’s at the beginning of the cycle,” he said.

“You can’t wind the clock back. They’ve missed a lot of growth already, but the front windscreen suggests there’s a heck of a lot more to come.”

Price growth will likely be slower through 2025 and dependent largely on interest rates, which may fall in February, Ms Flaherty said,