Australian Housing Market Property Prices Continue to Rise

The Australian property market shows no signs of slowing down, as data from CoreLogic reveals a 0.6 percent increase in property prices in April. This marks the 15th consecutive month of price growth, with the national median dwelling value now standing at $779,819. Tim Lawless, the head of research at CoreLogic, attributes the sustained increase in property prices to higher interest rates, worsening housing affordability, and the rising cost of living. Additionally, a “mismatch” between demand for housing and limited supply further contributes to the upward pressure on prices. Lawless warns that there is unlikely to be any relief in property prices in the near future.

Property Prices in Major Cities

Sydney: The Most Expensive City to Buy In

Sydney remains the most expensive city in Australia to buy property, with a median house price of $1.4 million. Despite the high prices, Sydney’s property market has remained relatively stable, with a 0.4 percent increase in prices each month over the past three months.

Melbourne: Slight Decrease in Prices

Melbourne is the only capital city that experienced a slight decrease in property values in April, with a 0.1 percent drop. However, Melbourne still holds the fourth-highest median property price in the country, behind Sydney, Canberra, and Brisbane.

Brisbane: Growth Slows Down

Brisbane saw a 0.9 percent increase in property prices in April, dipping below 1 percent for the first time in 12 months. Lawless attributes this slowdown to affordability pressures, as prices have increased by nearly $300,000 since the onset of the COVID-19 pandemic.

Adelaide: Second-Biggest Value Increase

Adelaide, as a mid-sized capital, experienced the second-largest increase in property values among the capital cities in April, with a 1.3 percent rise. Despite this increase, properties in Adelaide remain relatively affordable compared to the national median price.

Perth: Largest Growth in Property Prices

Perth continues to see the largest growth in property prices, with a 2.0 percent increase in April. Dwelling values in Perth have risen by 21.1 percent in the past year, and Lawless notes that there are no signs of the market cooling down.

Hobart: Mixed Results

Hobart saw a 0.3 percent increase in property prices in April, but values are now 0.4 percent lower compared to a year ago. Interestingly, there was a greater gain in house prices compared to units in the past three months.

Canberra: Mild Increase in House Values

Canberra experienced a mild increase of 0.2 percent in house values in April, with the median house price being the second-highest among all capital cities.

Darwin: Most Affordable City

Darwin remains the most affordable city in Australia, with a median property price under $500,000. Housing affordability is less challenging in Darwin, which has seen a 1.9 percent annual increase in dwelling values.

Regional Property Prices

Compared to the capital cities, property prices in regional areas are considerably cheaper across all states and territories. However, regional property prices have been rising at a faster rate than those in the capital cities in the first four months of the year. Regional markets showing the strongest increases are aligned with the capital cities that have experienced the most growth. Regional Western Australia, South Australia, and Queensland have seen the largest gains in property prices over the past three months.

Overall, the Australian housing market continues to experience sustained growth, with no signs of slowing down. Despite affordability concerns and limited supply, property prices are expected to remain high in the foreseeable future. Investors and homebuyers should closely monitor the market and consider their options carefully.