This article is from the Australian Property Journal archive
AUSTRALIA’S home values have been on the up and up for seven consecutive months, with both house and unit values fast approaching their pre-pandemic peaks.
According to CBRE’s Australian Residential Figures report for Q3 2023, capital city house values have increased by around 7% since March and unit values by more than 5%.
“Nationally, dwelling values corrected by around 10% peak to trough. Since March, much of this correction has been reigned in. Most capitals have seen sustained recovery. Canberra appears to be the exception,” read the report, authored by Craig Godber, head of residential and BTR research, Sameer Chopra, head of research, Pacific and ESG and Isabella O’Hara, research analyst.
“In fact, REIA data to June was showing Perth and Adelaide median house prices at record highs while Brisbane and Sydney were quickly approaching their previous peaks.”
For the June quarter, national median house prices were down 3.4% and median unit prices.
With the return of overseas migration and supply pipelines remaining limited, the national vacancy rate for the quarter settled at around 1.0%, reflecting a 17-year low.
In rental markets across the country, rental rates have continued to rise, nearing 30% in annual growth in some markets with increases expected to carry on over the coming year at least.
“Undersupply in the rental market remains the key issue to be addressed with vacancy to remain at near historic lows and rental growth pressures to continue,” read the report.
“Despite government moves to boost supply, it will still take some years for pressures to be relieved, with the financial feasibility of large projects still questionable and labour capacity restrictive.”
Sydney
In Sydney, pricing has rebounded over 2023, with rents inn turn reach new highs.
REIA data for the June saw Sydney’s median house price up 5.3% for the quarter and 0.1% for the year to $1.538 million.
With the median unit price up 2.6% for the quarter and down 0.7% for the year to $773,800.
While the median house rent was up 4.8% for the quarter and 9.2% for the year to $650/week and median unit rent up 7.7% for the quarter and 27.3% for the year.
Melbourne
Melbourne’s price recovery continued to lag behind much of the country, despite steady rises since the June quarter.
Melbourne’s median house price was down 1.1% for the quarter and 13.2% for the year to $937,500.
With the median unit price up 3.2% for the quarter and down 5.4% for the year to $630,500.
While the median house rent was up 2.1% for the quarter and 11.6% for the year to $525/week and median unit rent up 1.0% for the quarter and 22.1% for the year.
Brisbane
Strong levels of population growth continue to drive up values in Brisbane and South East Queensland, with interstate migration over 2021 and 2022 being replaced by overseas migration in 2023.
Brisbane’s media house price was up 2.0% for the quarter and stable from the same time last year at $765,000.
With the media unit price up 3.3% for the quarter and 6.4% for the year to $496,000.
The median house rent was up 2.1% for the year to $490/week with the median unit rent up 3.3% for the year to $475/week.
Adelaide
Adelaide remained largely resilient against the impacts of rising interest rates and housing cycle decline, with prices only declining in the September 2022 quarter for houses and the March 2023 quarter for units.
The median house price was up 3.6% for the quarter and 4.9% for the year to $695,000.
While the median unit price was up 6.7% for the quarter and 14.1% for the year to $485,000.
While median house rents were stable for the quarter and up 11.1% for the year to $500/week with the median unit rent up 2.5% for the quarter and 10.8% for the year to $410/week.
Perth
In Perth house prices have reached new record highs with little sign of slowing, while units have declined in four of the last five quarters.
Perth median house price was up 2.3% for the quarter and 5.5% for the year to $575,000, with the median unit price down 1.3% for the quarter and 1.7% for the year at $395,000.
House rents were up 6.8% for the quarter and 19.6% for year to $550/week, while unit rents were up 1.0% for the quarter and 16.3% for the year to $500/week.
Canberra
Like Melbourne, price growth in Canberra has been lagging over the last few quarters, through values still remain high.
The median house price was down 0.1% for the quarter and 4.1% for the year at $964,000, with the median unit price down 2.4% for the quarter and 1.2% for the year to $600,00.
With median house rents down 4.2% for the quarter and the year to $623/week and unit rents were down 1.7% for the quarter and stable for the year at $570/week.
