Shares vs. property: Which stocks and suburbs delivered the best growth in FY24?

We reveal the top 10 stocks and best city vs. regional markets in FY24.

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If you were invested in ASX 200 shares vs. property in FY24 then you probably did pretty well.

The S&P/ASX 200 Index (ASX: XJO) rose by 7.83% in FY24, and if we add dividends on top, the total return was a median 12.1%.

Meanwhile, the national median property price rose by 8%. If we add rental income to that capital growth, the total return for investors was a median 12.2%, according to CoreLogic data.

But these are just median figures, right?

As all investors know, returns can differ markedly depending on which individual ASX stocks you are invested in and the location of your real estate investments.

So, shall we get specific?

Best performing city and regional property markets of FY24

Home price growth across the city and regional property markets of Australia varied in FY24.

Home values in most markets went up. The Perth property market was an absolute screamer, with 23.6% growth over the 12 months. Two other mid-tier capital cities — Brisbane and Adelaide — also stood out.

But we have a couple of buyers' markets in play right now, too. They are Melbourne and Hobart, along with their regional counterparts.

Let's review the data from CoreLogic.

In short, investors holding properties in Perth and regional Western Australia did best in FY24.

Property marketCapital growth in FY24 (all homes)
Perth 23.6%
Regional Western Australia16.6%
Regional Queensland12.2%
Regional South Australia 11.3%
National 8%
Regional New South Wales 4.1%
Regional Tasmania0.7%
Hobart (0.1%)
Regional Victoria (0.5%)
Source: CoreLogic

Want to get even more specific?

Suburb-level data for price growth in FY24 is not publicly available from CoreLogic yet. However, we can report the best price growth among SA3 districts across Australia's eight capital cities.

An SA3 is a location metric used by the Australian Bureau of Statistics (ABS). The ABS defines SA3s as "often the functional areas of regional towns and cities with a population in excess of 20,000 or clusters of related suburbs …".

The top 10 SA3 areas for price growth nationally were all in Greater Perth and experienced between 26% and 33.19% capital growth.

In order, they were Kwinana, Armadale, Gosnells, Rockingham, Mandurah, Canning, Cockburn, Swan, Wanneroo and Serpentine-Jarrahdale.

Here are the No. 1 SA3s for home price growth in each of the greater capital city areas.

Best-performing SA3 areas for home price growth in FY24

Capital cityNo. 1 SA3 district Capital growth (all homes)
SydneyMount Druitt13.96%
PerthKwinana 33.19%
CanberraWeston Creek5.24%
Hobart Sorell-Dodges Ferry2.78%
Darwin Litchfield3.21%
Source: CoreLogic

Top performing ASX 200 shares of FY24

Now we can compare the capital growth of the top 10 ASX 200 shares vs. property in FY24.

ASX 200 sharesCapital growth in FY24
Pro Medicus Limited (ASX: PME)118.3%
Life360 Inc (ASX: 360)115.4%
Red 5 Limited (ASX: RED)89.5%
West African Resources Ltd (ASX: WAF)86.1%
Altium Ltd (ASX: ALU)84.3%
Hub24 Ltd (ASX: HUB)82.9%
Deep Yellow Limited (ASX: DYL)77.5%
SiteMinder Ltd (ASX: SDR)74.3%
Neuren Pharmaceuticals Ltd (ASX: NEU)73.6%
Goodman Group (ASX: GMG)73.1%
Source: S&P Global Market Intelligence

What's the outlook for home values?

The CBA economics team has just revised its forecast for home price growth in the calendar year of 2024.

Senior economist Belinda Allen said the forecast had increased from 5% growth to 7% growth nationwide. The upward revision is primarily due to strong demand and a low supply of homes for sale.

Looking ahead to the calendar year 2025, CBA expects another 5% lift nationwide, with the mid-tier capital cities of Perth, Brisbane and Adelaide continuing to outperform Sydney and Melbourne.

Motley Fool contributor Bronwyn Allen has positions in Goodman Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Goodman Group, Hub24, Life360, Pro Medicus, and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Goodman Group, Hub24, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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