Key takeaways
Australia’s housing upswing continued via March with the nationwide House Worth Index rising 0.6%, on par with February’s improve, taking the present upswing in housing values via its 14th straight month of progress.
Each capital metropolis besides Darwin (-0.2%) recorded an increase in dwelling values over the month, though the month-to-month beneficial properties proceed to be punctuated by variety.
The median home worth in Australia’s mixed capital cities is now $956,782.
The median unit worth in Australia’s capital cities is $659,941
The median dwelling worth in Australia’s mixed regional areas is $620,032
However in fact, there are markets inside markets, so we element the median costs for every capital metropolis on this article.
Australia’s housing upswing continued via March with the nationwide House Worth Index rising 0.6%, taking the present upswing in housing values via its 14th straight month of progress.
Beneath this headline end result, our housing markets have been fragmented with various efficiency across the nation.
Whereas each capital metropolis besides Darwin (-0.2%) recorded an increase in dwelling values over the month, every state is in its personal property cycle as you will notice from the statistics beneath.
And naturally, our capital cities are performing in another way to the regional housing markets.
Change in dwelling values round Australia
Supply: CoreLogic 1st April 2024
- The median dwelling worth for Australia now sits at $772,730
- The median dwelling worth for our mixed capital cities now sits at $848,475
- The median dwelling worth for our mixed regional cities sits at $620,032
Present Australian home worth developments
After all, there may be not one property market round Australia as the next chart clearly reveals.
The continued rise in housing values displays a persistent imbalance between provide and demand which varies in magnitude throughout our cities and areas.
Perth continues to face out with a considerably larger charge of progress in comparison with some other area, up 1.9% over the month.
Adelaide (+1.4%), Brisbane (+1.1%) and the regional areas of SA (+1.1%), WA (+2.1%) and Queensland (+1.1%) additionally present a constantly excessive charge of capital progress month-to-month.
These areas are usually benefiting from a mixture of comparatively decrease housing costs and optimistic demographic components that proceed to help housing demand.
Though the tempo of beneficial properties has proven some uplift, most areas are nonetheless recording worth progress properly beneath the highs of final yr when the nationwide index rose 1.3% in Could.
| Onset of Feb 2024 | Δ COVID to 2024 | Δ from peak to Feb 2024 | Peak date | |
|---|---|---|---|---|
| Sydney | 25.4% | $230,889 | -1.4% | 22-Jan |
| Melbourne | 11.0% | $77,422 | -4.1% | 22-Mar |
| Brisbane | 55.2% | $290,831 | <at peak> | 24-Mar |
| Adelaide | 57.1% | $266,887 | <at peak> | 24-Mar |
| Perth | 56.0% | $252,624 | <at peak> | 24-Mar |
| Hobart | 28.3% | $142,980 | -11.5% | 22-Mar |
| Darwin | 24.4% | $97,921 | -6.6% | 14-Could |
| Canberra | 31.2% | $199,731 | -6.1% | 22-Could |
| Regional NSW | 46.9% | $232,311 | -4.3% | 22-Could |
| Regional VIC | 33.6% | $142,966 | -6.5% | 22-Could |
| Regional QLD | 56.2% | $225,106 | <at peak> | 24-Mar |
| Regional SA | 56.2% | $146,579 | <at peak> | 24-Mar |
| Regional WA | 56.2% | $177,668 | <at peak> | 24-Mar |
| Regional TAS | 44.6% | $157,680 | -4.9% | 22-Could |
| Mixed capitals | 29.3% | $192,468 | <at peak> | 24-Mar |
| Mixed regional | 48.7% | $202,980 | -0.40% | 22-Mar |
| Nationwide | 33.4% | $193,608 | <at peak> | 24-Mar |
Observe: Onset of COVID calculated from March 2020
What you might want to learn about median home costs
We’ve written an in depth article explaining why to not belief median property costs right here.
Nonetheless, understanding median home costs might be helpful as a result of they provide buyers a tough information in regards to the areas they’ll afford.
But they need to by no means be thought-about to be the Holy Grail of property knowledge, due to the tendency for median costs to leap round from quarter to quarter.
They’re extra a mirrored image of the properties just lately bought within the space quite than what a specific property is value.
In lots of areas understanding the median home worth is sort of nugatory due to the variations of the good variation in sale costs for homes, which suggests the world doesn’t have a homogeneous model of housing.
For instance, you would get a big variation in property worth for related properties whenever you evaluate the extra fascinating areas inside a specific suburb, resembling a property having water views with ones which can be much less fascinating resembling on a busy highway and even on a secondary most important highway or too close to the practice or with views of the service station throughout the road.
As you possibly can see, if a suburb has housing of variable high quality, the median home worth just isn’t very helpful as a result of some properties are merely extra priceless than others.
Nonetheless, if a suburb has very related housing, resembling renovated older houses on massive blocks or a more moderen suburb the place most of its housing inventory was constructed over a couple of years, the median home worth could be extra related.
Melbourne’s median property worth
Right here is the most recent knowledge on the median property costs for Melbourne.
Supply: CoreLogic, 1st April 2024
Melbourne’s values have risen 11% because the onset of Covid, however are nonetheless -4.1% beneath their peak of March 2022.
Clearly the Melbourne housing market has not carried out as strongly as another capitals over the past yr.
This creates a window of alternative for strategic property buyers as Melbourne property values have vital upside potential.
Nonetheless the Melbourne housing markets are fragmented and greater than 50 Victorian suburbs noticed home worth progress exceed the typical nationwide common home worth progress in 2023.
Seven Melbourne suburbs even posted beneficial properties above $100,000 to trump the state’s $91,500 common earnings.
There’s at the moment a flight to high quality properties in Melbourne, with A-grade houses and “funding grade” properties nonetheless in brief provide for the prevailing demand, however B Grade properties are taking longer to promote and knowledgeable patrons are avoiding C Grade properties.
Shifting ahead sturdy immigration and a scarcity of provide of properties will assist preserve pushing Melbourne property costs up.
Melbourne’s public sale outcomes present the market depth skilled to date this yr with a number of patrons vying for good properties.
Sydney’s median property worth
Right here is the most recent knowledge on the median property costs for Sydney.
Supply: CoreLogic, 1st April 2024
The Sydney property market noticed house values defy predictions and rise steadily in 2023 – with some areas rising by as a lot as $1.5 million.
Sydney led this present property upturn beginning to rise in January 2023 with fewer houses available on the market at a time of accelerating purchaser demand underpinning the expansion spurt with greater than 90 per cent of Sydney suburbs rising in worth.
Optimistic demand drivers stemming from the shortages in rental provide and rebound in worldwide migration are underpinning its progress.
Nonetheless, some areas underperformed – suburbs that had the most important worth drops have been in Central Coast, Baulkham Hills and Hawkesbury areas – areas that noticed vital progress throughout the Covid lockdowns.
Sydney public sale clearance charge have been sturdy all yr, exhibiting vital depth available in the market and suggesting sale costs will proceed to maintain rising this yr.
Shifting ahead, the assorted sectors of the Sydney property markets can be fragmented, which is a extra “regular” property market.
Brisbane’s median property worth
Right here is the most recent knowledge on the median property costs for Brisbane.
Supply: CoreLogic, 1st April 2024
Brisbane’s housing market skyrocketed throughout the pandemic with 55.2% trough to peak progress, and is at the moment at a brand new peak in worth.
Our on-the-ground expertise at Metropole Brisbane is that there’s sturdy demand from each house patrons and property buyers for A-grade houses and investment-grade properties.
New provide is struggling to maintain up with the rising demand, additional supporting rising house values.
On the finish of final yr, Brisbane public sale market slumped slightly, however Brisbane has by no means been metropolis that held many auctions, nonetheless, as you possibly can see from the chart beneath, the Brisbane public sale market has been sturdy all through 2024, suggesting property costs will preserve rising.
Adelaide’s median property worth
Right here is the most recent knowledge on the median property costs for Adelaide.
Supply: CoreLogic, 1st April 2023
The Adelaide property market was slightly slower to growth than the east coast capital cities however as soon as it acquired going it has remained one of many best-performing capital metropolis property markets assisted by its relative affordability.
CoreLogic knowledge reveals Adelaide values recorded a COVID-19 “trough to peak” progress of 57.1 per cent.
The comparative affordability of town’s houses has seen costs holding up higher as rates of interest have risen.
In truth a dozen new suburbs entered Adelaide’s million-dollar membership over the previous yr.
Seacliff, Glenelg North, Glengowrie, Clarence Gardens and North Brighton have been among the many 12 that hit the seven-figure median home worth threshold as of December.
Malvern and St Peters’ median home costs surpassed $2m, becoming a member of Toorak Gardens – which was the one suburb with a $2m median in December 2022.
Town now has 64 suburbs with median home costs above $1m and three with median above $2m.
Like in most capital cities, low inventory ranges are additionally serving to to insulate house values, with elevated competitors amongst potential patrons
The sturdy public sale clearance charges in 2023 have been one other signal of the energy and depth of the Adelaide property market final yr, and whereas they’re slightly decrease this yr, the depth of purchaser demand has stored Adelaide public sale clearance charges excessive in 2024.
Perth’s median property worth
Right here is the most recent knowledge on the median property costs for Perth.
Supply: CoreLogic, 1st March 2024
Perth housing values remained flat for many of the final decade, however final yr home and unit values in Perth loved their most important will increase with a 56% surge and are at the moment at a brand new peak.
Nonetheless, I might keep away from investing in Perth for numerous causes:
- Presently East Coast property patrons are pushing up Perth property values, shopping for properties website unseen and paying costs properly above market worth. This implies the investor has to overpay, they may remorse down the monitor.
Our contacts on the bottom in Perth advise us that East Coast patrons’ brokers (NOT Metropole) are paying what they name “foolish costs” considerably above what locals would pay, as a result of properties are nonetheless comparatively low-cost in Perth. And they’re shopping for these properties, website, unseen, creating vital dangers for his or her purchasers. - The Western Australian economic system just isn’t as various as the opposite capital cities. Whereas Perth just isn’t a mining city, it’s too depending on a few industries – particularly the mining trade which accounts for round 45% of the financial output and far of that is depending on China, and this has a direct knock-on impact on WA home costs. The mining and power corporations are massive employers in Perth. Because of this the Perth property market is vulnerable to a downturn in mining.
Aside from the big power corporations, most company head workplaces are situated within the jap capital cities. Administration roles in head workplaces have a tendency to draw larger salaries which, to some extent, help/underpin property costs. - Additional, the bigger east coast capital cities have considerably bigger the inhabitants with extra various the employment alternatives which usually appeal to larger salaries.
Hobart’s median property worth
Right here is the most recent knowledge on the median property costs for Hobart.
Supply: CoreLogic, 1st April 2024
Hobart was the darling of speculative property buyers and the best-performing property market in 2017- 2018
After rising 28.3% over the Covid interval, Hobart dwelling values fell and are nonetheless 11.5% beneath their peak of March 2022.
Hobart was an underperformer for many of 2023 and is more likely to stay so in 2024.
Darwin’s median property worth
Right here is the most recent knowledge on the median property costs for Darwin.
Supply: CoreLogic, 1st April 2024
Darwin stays essentially the most inexpensive metropolis to buy a home.
Town’s famously relaxed and laid-back way of life and the low-density inhabitants have been a bonus within the post-pandemic period and drove curiosity in Darwin property.
After rising 24.4% over the Covid interval, Darwin’s dwelling fell 6.6% after peaking on Could 2014 and costs are nonetheless beneath their earlier peak.
Canberra’s median property worth
Right here is the most recent knowledge on the median property costs for Canberra.
Supply: CoreLogic, 1st April 2024
Canberra’s property market was as soon as the “quiet achiever” with median home costs recording 38.3% progress over the latest property growth.
A lot of components have been driving home worth will increase in Canberra and the broader ACT together with rising curiosity from worldwide and interstate buyers and tight land releases amongst others.
After rising 31.2% over the Covid interval, Canberra’s dwelling values fell and are nonetheless 6.1% beneath their peak in Could 2022.
Nonetheless, the Canberra market appears to be selecting up this yr.
The subdued Canberra public sale clearance charges all through 2023 have been an indication of the weak spot of the Canberra property market final yr however public sale clearance charges have been stronger in 2024 – an indication of the strengthening market.
