Australian Property Market Experiences a Resurgence, With Smaller Capitals Achieving New Peaks

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September 2023 has marked an impressive bounce-back for the Australian property market, with a noteworthy increase in house prices in various capitals. PropTrack’s recent Home Price Index indicated that national home prices have seen a 0.35% increase from August to September 2023, accumulating a rise of 4.31% over the year.

This recovery signifies a rebound from the property price falls witnessed in 2022. While many capitals enjoyed growth, Darwin remains an exception with a slight dip in its housing values2. However, the Northern Territory capital’s drop isn’t drastic, as prices in the city have surged by 25.5% since March 20202.

Eleanor Creagh, senior economist and the author of the PropTrack report, mentioned, “The spring selling season experienced a busy start in September. Buyer and seller confidence is on the up and choice is improving significantly in the major capitals.”1 Creagh’s analysis suggests that multiple factors have contributed to this rise, such as a surge in net overseas migration, tight rental markets, and an existing housing shortage.

Sydney’s market, in particular, is edging close to achieving a new peak, with the recent surge in September bringing it merely 0.03% away from the record peak of February the previous year.

While Darwin’s home prices recorded a marginal dip, it didn’t experience a large downturn in 2022, providing some stability to homeowners in the region2. Creagh points out, “Unlike many other markets, Darwin has not seen a recovery in prices in 2023, but it also did not see as large a downturn in 2022.”

Smaller capitals such as Brisbane, Adelaide, and Perth have not only recovered but have also hit new highs. With a year-to-date increase of 6.46% for Brisbane, 7.91% for Perth, and 6.90% for Adelaide, the housing market in these areas is thriving.

To give a perspective on the national landscape: the median home value in Australia was pegged at $754,000 in September, with the combined capital cities median home price at $817,0002. Leading the pack was Sydney with a median home value of $1.057 million, followed closely by ACT, Melbourne, and Brisbane.

In summary, while the overall Australian property market is on an upward trajectory, regional variations still exist, reflecting the unique economic and demographic factors at play in each area.

References:

“Australian house prices jump again in September 2023 and smaller capitals hit fresh peaks” by Henry Thai. ↩ https://thepropertytribune.com.au/market-insights/australian-house-prices-jump-again-in-september-2023-and-smaller-capitals-hit-fresh-peaks/ 

“Darwin property values holding steady” by Courtney Snowden. ↩ https://www.news.com.au/finance/real-estate/darwin-property-values-holding-steady/news-story/721b6f19e1c72a91ff32a5d8819936d7