As 2024 draws to a close property prices are flying in Perth, Brisbane and Adelaide which have all recorded double digit price growth and now sit at all time highs.

In Melbourne the picture is very different as prices slid -1.9 per cent in the 12 months to October.  According to CoreLogic, Melbourne dwelling values are now -5.1 per cent below the city's record high in March 2022.

KR Peters Director Peter Nicolls says the latest figures show Melbourne is being left behind the boom states when it comes to capital growth for both investors and owner occupiers.

According to CoreLogic in the 12 months to October 2024, dwelling values in Australia rose 6 per cent but the picture is very uneven across the country.

The boom has been led by Perth up an incredible 22.6 per cent, followed by Brisbane 13 per cent and Adelaide 15 per cent.

Like Melbourne, other cities to experience negative growth include Hobart down 1.2 per cent and Darwin down .1 per cent.

Sydney achieved modest growth of 3.7 per cent.

"Melbourne has gone from being a darling of the nation's property market to demand and prices collapsing and being at the bottom of the chart," said Mr Nicolls.

"Compared to where we were and where we are now, it feels like Christmas has come early to the property market in Victoria. It hasn't been the same since Melbourne Cup day. Buyers have deserted the market."

Mr Nicolls said the auction clearance rate in Melbourne hovers around 61 per cent, from an average not that long ago of around 80 per cent.

The figures are backed by the on the ground experience of KR Peters agents.

"At KR Peters we are finding that auctions are being passed in, not reaching reserve," Mr Nicolls said.

"Right now if you want to sell your property if the price is not right buyers will dismiss it. You really have to go to the market with a very competitive, sharp price.

"All of a sudden the pendulum has swung towards buyers, whereas before vendors had the box position. Now buyers have so much choice because there are a lot of properties out there."

Mr Nicolls said buyers are emboldened and want to negotiate a price significantly  below the bottom of the range quoted on many properties.

"At times like these you need an agent with strong negotiation skills to work to get you a fair and reasonable price," he advised.

2024 has also been a tough year in the property development industry.

Mr Nicolls said 2024 has "been a year of frustration when it comes to obtaining permits" which he describes as "a nightmare".

Government authorities are understaffed and undermanned. Big Build projects are draining skilled labour from the market and inflating wages and other costs.

"Everything takes forever and we are taxed to the hilt in Victoria. With everything combined it has been a hard year. No one I speak to says doing business in Victoria at the moment is satisfying or  rewarding," said Mr Nicolls.

High interest rates and uncertainty over when they will start coming down has also left a shadow over 2024.

"When people buy property they want to make a return on investment. It's impossible at the moment in Victoria. Investors are pulling out and taking their money interstate when they see what is happening there."

One bright spot on an otherwise bleak landscape is that well priced new developments, like The Rise at Pakenham, are still attracting strong buyer interest.

KR Peters won Campaign of the Year (Land Victoria and Tasmania) at the annual REA Excellence Awards for the marketing of The Rise.

Mr Nicolls said competing estates had imposed price increases of up to 30 per cent, and were now forced to offer substantial rebates to attract buyers.

With the market close to rock bottom, Mr Nicolls hopes the picture will improve in 2025, especially if long awaited interest rate cuts occur.

"The rest of Australia is flying and in Victoria the government has to say to themselves 'what are they doing that we're not?' Easing land tax would be a good start in turning the situation around.

"No one wants 2025 to be a repeat of 2024."

For advice on the outlook for the property market in 2025 contact the team at KR Peters Real Estate at Officer 5943 1111 or Wantirna South 9800 0000.