Australia Property Market Property Prices Rise for the 16th Straight Month

The property market in Australia continues to see a steady increase in prices, marking the 16th consecutive month of growth. According to data from CoreLogic, property prices rose by 0.8 percent in May, the largest monthly increase since October of last year. This surge in prices has taken the national median dwelling value to $785,556. Additionally, Brisbane has surpassed Canberra to become the second-most expensive capital city for property prices, a position it hasn’t held since 1997.

Sydney: Australia’s Most Expensive City

Sydney remains the most expensive city to buy property in Australia, with a median house price of $1.4 million. Despite a decline of 12.4 percent after reaching record-high prices in January 2022, Sydney has recovered and is now equaling those peak prices. The city has seen a 14.1 percent increase in dwelling values “through the cycle to date”, according to CoreLogic.

Melbourne: Property Prices Recover

After a slight decrease of 0.1 percent in April, Melbourne’s property prices bounced back in May with a 0.1 percent increase. The city has the fourth-highest median property price in the country, trailing Sydney, Brisbane, and Canberra.

Brisbane: Surging Property Market

Brisbane experienced strong growth in its housing market in May, resulting in becoming the second-most expensive city in Australia for property prices. The median house value in Brisbane is now $937,479, surpassing Melbourne. Brisbane’s property values have grown 59.2 percent since the start of the COVID-19 pandemic, compared to Melbourne’s growth of 11.2 percent.

Adelaide: Affordable Capital City

Adelaide, considered a mid-sized capital by CoreLogic, saw the second-largest increase in property values in May with a growth of 1.8 percent. The median property value in Adelaide is $757,448, making it relatively affordable compared to the national median value of $785,556.

Perth: Leading Growth in Australia

Perth recorded the largest growth in property prices in May, with a 2.0 percent increase. The city’s dwelling values have surged by 22 percent in the past year. Together with Brisbane and Adelaide, Perth has been at the forefront of the housing market growth in Australia. Limited supply, with the number of available properties for sale remaining over 40 percent below the five-year average, has contributed to the rise in prices.

Hobart: Declining Property Values

Hobart was one of two capital cities to see a decline in property values in May. Both house prices and unit prices fell by 0.5 percent. Hobart’s property market is experiencing lower demand, resulting in a 41 percent increase in listings compared to the five-year average. Home sales in Hobart are also 6.4 percent below the previous five-year average.

Canberra: Modest Growth

Canberra experienced a modest increase of 0.5 percent in property prices in May, making it the third-highest out of the capital cities. Brisbane outpaced its growth, taking the second spot. Property prices in Canberra have increased by 2 percent in the past year.

Darwin: Affordable City with Growing Prices

Although Darwin is the most affordable city in Australia, its median property price has slightly surpassed $500,000. Darwin is the only capital city that didn’t see a lower rate of growth for upper quartile home values over the past year, according to CoreLogic.

Property Prices in Regional Australia

Property prices in regional Australia are considerably cheaper compared to the capital cities. Over the past year, regional property prices have increased by 6.8 percent, with a median value of $626,888. In May, only regional Tasmania and regional Victoria saw a decline in dwelling values, both dipping by 0.2 percent. Regional Western Australia experienced the largest increase in dwelling values with a growth of 1.8 percent. Regional South Australia and regional Queensland also saw modest growth of 1.4 percent and 1.1 percent, respectively.

Overall, the Australian property market continues to experience growth, with prices increasing for the 16th straight month. Sydney remains the most expensive city, while Brisbane has overtaken Canberra to become the second-most expensive. However, relief from high property prices is not expected until more properties are built, according to CoreLogic’s head of research, Tim Lawless.

Source: Down Under Realty