This article is from the Australian Property Journal archive
WITH the spring selling season well underway, national home prices have set record for October at $759,000, up by more than 35% since the onset of the global covid pandemic.
According to the latest data from PropTrack, in October national prices were up 0.36% month-on-month to peak levels, reflecting a 4.93% increase so far in 2023.
“National home prices moved higher in October, reaching new peak levels. Although the volume of new listings hitting the market has risen over the spring selling season, the demand for housing has remained strong, fuelling further home price growth and reflecting the sustained improvement in conditions,” said Eleanor Creagh, senior economist at PropTrack.
Combined capital city house prices were up 0.37% for the month and 5.55% for the year to a peak of $824,000, which is up 31.2% from the onset of the global pandemic.
In Sydney, prices have fully recovered from the 2022 downturn period and are now sitting 0.32% above the peak recorded in February 2022.
Sydney prices were up 0.37% in October to a new high of $1,070,000. Prices are up 7.62% so far in 2023 and 7.61% from trough.
In Melbourne, prices were up 0.28% for the month to $815,000, reflecting 0.64% annual growth. Melbourne prices are up 16.6% from March 2020 levels but are still down 3.90% from peak.
Brisbane prices were up 0.52% over the month to $773,000, reflecting 7.36% in annual growth and up 53.2% from March 2020 levels.
In Adelaide, prices were up 0.47% for the month and 8.77% annually to $697,000, up 53.2% from March 2020.
Perth prices were up 0.52% in October to $604,000, reflecting an increase of 10.90% for the year and 42.2% since the onset of the pandemic.
Hobart prices were up 0.51% to $673,000, though were down 4.08% for the year and 6.71% from peak, while still up 37.8% from March 2020.
Darwin was down 0.11% for the month and 1.35% for the year to $493,000, while also down 2.24% from peak but up 25.9% from March 2020.
In the ACT, prices were up 0.11% over October to $848,000, which is down 0.18% annually, 5.21% from peak but up 36.2% since March 2020.
“Strong demand stemming from the rebound in net overseas migration, tight rental markets and limited housing stock has offset the impacts of substantial rate rises and the slowing economy,” added Creagh.
“At the same time, dwelling approvals have declined, hitting decade lows earlier this year. The sharp rise in construction costs, compounded by costly delays arising from labour and materials shortages, has slowed the completion of new homes.”
Over the month, prices in the combined capital cities were outperforming regional markets, despite growth in regional markets picking up after soft increases for much of the year.
Combined regional market prices were up 0.32% for the month, with Regional Queensland up 0.61% and regional WA up 0.45% and leading regional gains.
“Despite a weaker outlook for the economy, population growth is rebounding strongly and this looks set to continue. Interest rates may rise further, but they are likely close to, if not at, their peak,” said Creagh.
“Together with a shortage of new home builds and challenging conditions in the rental market, home prices are expected to rise further.”
