Property Prices in Australia Surge, Perth Outshines as Fifth Most Expensive Market

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Australia is witnessing a significant uptick in property prices both in metropolitan and regional areas, as reported by Ray White. This surge is setting new records across the country, with Western Australia emerging as a standout, particularly in Perth, which has now become the fifth most expensive housing market in the nation.

According to Vanessa Rader, the head of research at Ray White, Perth’s median house price has escalated to $821,093. “Perth has become Australia’s fifth most expensive housing market, overtaking Adelaide with a median house price of $821,093,” Rader stated. This reflects a robust 3.6% monthly increase and a remarkable 26.7% annual growth.

Other cities like Adelaide and Brisbane are also showing strong annual growth rates of 14.7% and 14.4%, respectively. However, Melbourne trails with a modest 1.3% monthly growth, which is below the national average of 2.1%.

The regional markets are experiencing less dramatic changes compared to their urban counterparts. Western Australia leads among them, although the median prices in these areas remain under $500,000, making it one of the more affordable regions. Meanwhile, South Australia and Queensland have shown steady growth at 2.6% monthly, with Victoria, Tasmania, and New South Wales falling below the national regional average of 2.1%.

Rader also noted that the unit market is closely following the trends observed in the housing market. “All areas show positive growth, with Melbourne and Hobart trailing at 1.3% and 1.5%, respectively,” she explained. “Perth leads at 2.9%, followed closely by Brisbane and Adelaide.” Even Sydney and Canberra have shown more modest yet positive annual growth at 6.7% and 8.5%, respectively.

As the market moves forward, recent inflation data has reignited discussions about potential interest rate hikes, which could significantly impact property listings and market dynamics. “The ongoing imbalance between housing supply and demand continues to drive price increases, while affordability concerns grow amid persistent inflationary pressures,” Rader commented on the future outlook and potential challenges facing the market.

This comprehensive overview by Mina Martin highlights the dynamic shifts in Australia’s property market, underscoring regions and factors influencing current trends and future expectations.

References:

https://www.brokernews.com.au/news/breaking-news/property-prices-surge-nationwide-285091.aspx