The year 2024 has been a remarkable one for Australia’s real estate industry. It has been shaped by emerging new trends, economic pressure, geopolitical shifts and the continued acceleration of technology advancements. As we collectively close out 2024 and step into 2025, it’s been a year worthy of reflecting on these key trends that have shaped the sector over the past 12 months.
These key trends not only shaped the market but also set the stage for future growth and innovation as we enter 2025.
Technology
Technology has continued to play a significant role in the ongoing transformation of the real estate industry in 2024. AI has well and truly made it mainstream, solving real problems to allow both property managers and agents to focus on their number 1 priority, their relationship with buyers, sellers, landlords and tenants. We are proud to have been recognised for leading the way with this with our award-winning product, RiTA. The introduction of generative AI in RiTA has meant our customers are more supported by technology than ever before in building & nurturing relationships at scale.
Looking ahead, our real estate team at CoreLogic remains focused on delivering AI-first products and solutions that deliver world-class user experiences ensuring agents have the tools they need to excel in 2025
Energy and sustainability
Energy efficiency and sustainability have emerged as a central theme in the residential real estate sector. Around the globe there remains a strong focus on Net Zero emissions targets, and while the commercial real estate sector is well into the journey the residential sector is in the early stages of policy and framework development. One thing is clear, there is a strong desire of all participants in the property decision-making process to enable and support the shift required around energy efficiency and sustainability.
At CoreLogic, we are leading the way in partnership with the CSIRO and our market-first Rapid Rate product. We look forward to providing support to the industry, our clients, policymakers and all stakeholders as we embark on energy rating disclosure for residential properties in 2025 and beyond.
Housing affordability and supply
It feels like not a day has passed in 2024 without dialogue focused on the housing affordability & supply challenges facing our great nation and its people. Federal & state government policies aimed at boosting housing affordability and addressing supply constraints were plentiful. The post COVID era has seen layers of economic uncertainty where there has been a sharp increase in house prices outpacing wage growth, inflation has climbed to rates unseen by our Gen Zer’s in their working career, interest rates increased rapidly and are holding higher for longer, challenges fuelled by land availability, regulatory hurdles and not to forget the highest influx of immigrants on record occurred in September 2024.
The CoreLogic monthly Housing Value Index for December showed the ease in housing values with just 0.1% growth. It also showed rents levelling out, and listing volumes being up. You can see the full update and what this means as we enter 2025 from our research team here.
Data and content
The importance of data and content strategy for real estate agencies has grown significantly in 2024. Agencies rely heavily on data & content for understanding their marketplace, build audiences, win listings and ultimately successfully transacting a property has never been greater. This coupled with the need for the real estate agency to own the consumer relationship to remain relevant has driven a need for change in the way in which agencies fundamentally operate.
At CoreLogic, we are committed to supporting the agency in its quest to develop and implement 1st party data strategies, and 1st publisher strategies through both our Digital Ad solution Plezzel and RiTA.
Adapting to a complex geopolitical landscape
It's fair to say that outside of these trends, the major influence on the property markets and real estate sector has been a very complex geopolitical landscape that has seen the largest number of people voting in an election on record in any single year in history.1 Legislative and policy changes have a significant impact on the performance of the economies and subsequently property markets globally. The resilience, adaptability and ability to evolve are going to be critical for the real estate industry as we enter 2025.
Looking ahead: gratitude and excitement for 2025
Technology will continue to revolutionise the industry, providing significant opportunities for efficiency and productivity gains as well as an ability to build & nurture relationships at scale. Energy efficiency will evolve at an accelerated rate providing the real estate industry to embrace what is arguably a once-in-a-generation shift to net zero. How agencies collect, use and maintain data will continue to be a focus in the context of a 1st party data strategy which ultimately supports the real estate industry publishing their content on their owned channels first.
In conclusion, I would like to offer my sincere thanks to our customers and partners who have supported CoreLogic in 2024. Our talented people take great pride in the privilege of serving and supporting you with solutions that are at the centre of the property decision-making process as well as building and nurturing the relationship you have with buyers, sellers, landlords and tenants. We look forward to continuing to build enduring relationships as a trusted partner of choice for ambitious agents and forward-thinking agencies in 2025. Keep an eye out for the invitations to our 2025 Real Estate Roadshows, we are looking forward to connecting and share insights with the real estate industry across Australia.
1 Global elections in 2024 - Statistics & Facts | Statista
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