Poised for growth: The 2024 real estate market and what to expect in 2025
Andrew McCann - Chief Executive Officer
November 2024The Melbourne property market finally found balance in 2024, with solid demand and increased activity creating a welcomed climate of cautious optimism.
Sales volumes across Melbourne rose steadily throughout the year as confidence returned. This was reflected in consistent auction clearance rates of up to 80 per cent across the Jellis Craig group – outperforming the metropolitan September quarter average of 73 per cent reported by the REIV, and delivering outstanding results for Jellis Craig clients.
Buyers continued to favour ‘turnkey’, fully renovated and well-maintained properties, reluctant to take on renovation projects due to rising construction and labour costs. The premium end of the market also performed exceptionally well. Properties in the $5 million-plus range, whether in lifestyle locations or Melbourne’s inner suburbs, remained in high demand, underscoring the enduring appeal of high-quality real estate in Melbourne's most desirable areas.
We saw a welcome increase in supply in 2024, which applied some downward pressure on prices in certain markets. However, while some recent analysis has suggested the Melbourne’s median house price has gone backwards, recent Core Logic data reveals it has remained stable in the September quarter, rising by 0.1 per cent to $916,000. This reflects a levelling-out effect, as increased supply met growing demand.
While the sales market moved toward equilibrium, the rental market remained in a state of imbalance, with demand continuing to outstrip supply. We saw an increase in the sell-off of investment properties, due to higher borrowing costs, increased land tax and stricter compliance laws, further restricting supply in the rental market.
In 2024, Jellis Craig continued its expansion into new markets, including Mooroolbark, Lilydale, Croydon, Mentone, Chelsea, Mount Martha, Mornington, and Geelong. Our brand has been warmly received in these areas, supported by incredibly experienced teams. This growth has been instrumental in driving a 23% year-on-year increase in sales, and our team now exceeds 1,000 people across the group. It has been an exciting period of growth for both our brand and our people.
Innovation has been another key focus, with the introduction of Jellis Craig Live, our exclusive vendor reporting portal. This ground breaking tool gives home sellers real-time insights into their property campaigns, from open-for-inspection numbers to online performance metrics. The overwhelmingly positive response from our clients highlights how much they value the transparency and exceptional service we strive to deliver.
This year also marked the 10th anniversary of The Jellis Craig Foundation. With the enthusiastic support of our growing team, we’ve strengthened partnerships with The Big Umbrella and The Resilience Project. In 2024, we proudly welcomed the Lighthouse Foundation as a new partner, extending our reach and commitment to meaningful change. Community contribution remains a cornerstone of our values, and we’re proud to collaborate with these inspiring organisations to create a lasting impact.
As we look to 2025, there’s every reason to be optimistic. We anticipate a steady growth trajectory with green shoots in capital gains fuelled by the expectation of a shift in interest rates. Having likely reached the peak of the current interest rate cycle, a predicted downward adjustment by March 2025,could re-energise buyer activity, stimulating modest price growth. Rental demand is expected to remain strong thanks to the ongoing shortage of new housing supply, with interest rate reductions and higher rental yields likely to encourage investors to return to the market.
With stabilising market conditions, robust rental demand, and Jellis Craig’s commitment to innovation and community stronger than ever, we are poised for another dynamic year ahead.
Andrew McCann
Chief Executive Officer, Jellis Craig
