Housing Market Trends Across Australia
New data from the PropTrack Home Price Index reveals that Australian home prices reached a historic high in September, erasing the declines observed last year due to rising interest rates.
The national median home price increased by 0.35% in September, with capital city medians also rising by 0.41%, despite increased property availability. Factors contributing to this growth include high levels of net overseas migration, tight rental markets, and a housing shortage. Perth, Sydney, Adelaide, and Brisbane experienced the fastest price growth, with Perth, Adelaide, and Brisbane reaching record highs. Although more properties are listed in Sydney and Melbourne, strong demand has sustained price increases. Prices fell in regional Victoria and the Northern Territory but rose slightly in regional South Australia and Queensland. Overall, population growth and housing shortages are expected to continue driving prices higher as interest rates stabilize.
Sydney's housing market has rebounded impressively since November 2022, with a 7.43% increase in the median home value, reaching $1.057 million. The City and Inner South, North Sydney and Hornsby, and Parramatta SA4 regions saw the most significant growth. Melbourne has also shown signs of recovery, posting its first positive annual price growth since 2022, although prices remain slightly over 4% below their peak. Melbourne's median price is now 0.07% higher than a year ago, with more affluent areas, like the Inner East, Outer East, and Inner South, leading the way with price increases of approximately 4%, 3%, and 2%, respectively.
Brisbane's housing market has hit a historic high, with the median home value reaching $762,000 in September, marking a 0.39% increase and a recovery from the 2022 declines. The southern and western regions have seen stronger growth, despite low stock levels. Meanwhile, Perth's property market is booming, reaching a record median value of $597,000, with a 0.78% increase in September. Over the past year, Perth's prices surged by 9.24%, making it the most affordable state for homebuyers. Affordability, coupled with factors like population growth and housing shortages, has driven strong demand. The South East and Mandurah regions in Perth have notably outperformed the rest of the city with a 12% price increase over the past year.
Adelaide's housing market continues to thrive, with a 0.48% increase in home prices in September, reaching a median of $689,000. Over the past year, prices surged by 8.31%, second only to Perth. The northern region of Adelaide led the way with a remarkable 12% price increase. Adelaide's relative affordability has offset rising interest rates, and low inventory levels have heightened competition. Canberra experienced a modest 0.30% price increase in September, though it lags in recovery compared to other capitals. Hobart saw a 0.09% price increase, but prices remain below pre-downturn levels despite a 38.4% rise since March 2020.
Darwin's housing market remained nearly static in September, with a mere 0.01% decrease in median home prices, distinguishing it as the only capital city to experience a decline. Over the past year, home prices in Darwin have decreased by 1.64%, with a more pronounced 2.43% drop from their peak in May 2022. Notably, Darwin has not seen a price recovery in 2023; however, it also did not encounter as severe a downturn in 2022, as pointed out by Ms. Creagh.
Source: https://www.realestate.com.au/news/home-prices-hit-record-high-despite-selling-surge/