Australia’s Property Prices Surge Continues: What’s Happening Across the Country
Australia’s housing market remains resilient with property prices rising for the 15th consecutive month, as reported by ABC News based on data from CoreLogic. The national median dwelling value has now reached $779,819, reflecting a 0.6% increase in April alone. Tim Lawless, CoreLogic’s head of research, highlights that despite high interest rates and cost of living pressures, property values are bolstered by a persistent demand-supply mismatch, making any decrease in prices unlikely in the near future.
Sydney continues to be the most expensive city with a median house price of $1.4 million. However, it’s Perth that recorded the most significant rise in April, marking a 2.0% increase, while Melbourne saw a marginal dip of 0.1%. “We aren’t seeing any signs of heat coming out of the Perth housing market just yet,” Lawless remarked, indicating that the city might be approaching the high growth rates experienced during the pandemic.
In contrast, Melbourne’s property market has broadly stabilized after a slight decrease over the recent months. This varied performance across cities illustrates the uneven impact of economic factors on regional property markets. Brisbane, for example, saw a slowdown in price increases to 0.9% in April, with affordability pressures starting to surface after significant gains since March 2020. Lawless notes, “Affordability pressures may be impacting the pace of growth across the city,” suggesting that the massive $300,000 increase in property values over the last two years is beginning to influence buyer activity.
The situation is similar in Adelaide and Hobart, where prices rose by 1.3% and 0.3% respectively in April. Adelaide’s properties remain relatively affordable compared to the national average, yet they’ve seen a 14% increase over the past year. Meanwhile, Hobart’s market shows signs of cooling with a slight decrease compared to last year despite the recent monthly gains.
Even Canberra and Darwin, often less highlighted in national property discussions, have seen steady growth. Canberra’s property prices increased by 0.2% in April, making it the city with the second-highest median house price, while Darwin remains the most affordable capital despite a 0.6% rise in prices.
The regional markets are also heating up, with property prices increasing at a faster rate than those in the capitals. For instance, regional Western Australia, South Australia, and Queensland have experienced the largest gains, linked to the robust growth in their respective capital cities.
This ongoing rise in property prices across Australia reflects deep-rooted issues of affordability and availability that are likely to persist. As Lawless aptly puts it, the current trends in the housing market reflect “a mismatch of demand for housing and limited supply,” which are key drivers maintaining high property prices in the foreseeable future.
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