This article is from the Australian Property Journal archive
THE peak of spring selling season has seen national home prices reach a new record high in October, with a further 0.26% bump over the month.
According to the latest PropTrack Home Price Index, Australian home prices are now up 5.62% from where they were last year at a new peak median of $797,000.
The combined capital cities have seen growth of 0.28% over the month and 5.85% annually, to a new peak median of $868,000.
“Buyers are out in force this spring selling season, with Australian home prices hitting a new peak in October,” said Eleanor Creagh, senior economist at REA Group.
“Though price growth had been slowing, the stronger October rise of 0.26% marks the 22nd consecutive month of growth. It’s clear resilient housing demand is defying persistent affordability restraints.”
The capital cities were split with annual losses recorded across Melbourne, Hobart and the ACT, while remainder recorded growth over the year.
Sydney was up 0.19% over October to a peak of $1.108 million, the only capital with a median value above the million-dollar mark. The NSW saw an annual increase of 5.04%.
While Melbourne recorded the strongest growth for October at 0.49% to $793,000, this reflects a 1.49% decline over the year and a 4.16% drop from peak levels.
Brisbane, Adelaide and Perth were all at peak value in October, with respective monthly increases of 0.19%, 0.43% and 0.32% and annual increases of 12.51%, 14.91% and 20.58%.
Brisbane’s median value was at $862,000, Adelaide at $783,000 and Perth at $773,000.
Hobart was stable over the month, for an annual decline of 0.93% to $683,000, which is down 8.40% from its peak.
Darwin was down 0.04% for the month and up 1.46% to $512,000, for a 1.34% decline from peak value.
Finally, the ACT was up 0.29% for the month, down 0.09% annually and down 5.42% from peak to a median value of $845,000.
“Although price growth regained momentum in October in every capital except Brisbane, Adelaide and Darwin, it was slower than at the end of the summer selling season, as buyers enjoy more choice,” added Creagh.
“Significant regional disparities persist in the pace of growth, with differing supply and demand conditions driving varied performance.”
Capital city price growth outpaced regional areas over the year and over October, with the combined regions up 0.20% over the month and 5.03% annually.
The combined regions were also at peak median value at $648,000.
| Region | Monthly growth (%) – All dwellings | Annual growth (%) – All dwellings | Median value ($) – All dwellings | Change since peak (%) – All dwellings | Peak month – All dwellings | Cumulative growth since pandemic (%) – All dwellings | Monthly growth (%) – Houses | Annual growth (%) – Houses | Median value ($) – Houses | Monthly growth (%) – Units | Annual growth (%) – Units | Median value ($) – Units |
| National | 0.26 | 5.62 | 797,000 | 0 | Oct 2024 | 45.4 | 0.27 | 5.71 | 869,000 | 0.19 | 5.14 | 661,000 |
| Capital Cities | 0.28 | 5.85 | 868,000 | 0 | Oct 2024 | 41 | 0.32 | 6.1 | 985,000 | 0.08 | 4.68 | 682,000 |
| Regional Areas | 0.2 | 5.03 | 648,000 | 0 | Oct 2024 | 58.4 | 0.14 | 4.77 | 669,000 | 0.53 | 6.56 | 572,000 |
| Sydney | 0.19 | 5.04 | 1,108,000 | 0 | Oct 2024 | 39.1 | 0.24 | 5.44 | 1,450,000 | -0.01 | 3.63 | 818,000 |
| Rest of NSW | 0.23 | 3.31 | 728,000 | 0 | Oct 2024 | 54.6 | 0.25 | 3.36 | 773,000 | 0.14 | 3 | 589,000 |
| Melbourne | 0.49 | -1.49 | 793,000 | -4.16 | Mar 2022 | 15.9 | 0.56 | -1.48 | 909,000 | 0.11 | -1.55 | 608,000 |
| Rest of Vic. | -0.12 | -1.51 | 573,000 | -5.17 | Apr 2022 | 39 | -0.12 | -1.6 | 596,000 | -0.09 | -0.36 | 419,000 |
| Brisbane | 0.19 | 12.51 | 862,000 | 0 | Oct 2024 | 76.5 | 0.16 | 11.75 | 970,000 | 0.34 | 16.88 | 670,000 |
| Rest of Qld | 0.34 | 10.45 | 703,000 | 0 | Oct 2024 | 75.4 | 0.14 | 10.12 | 729,000 | 1.03 | 11.64 | 659,000 |
| Adelaide | 0.43 | 14.91 | 783,000 | 0 | Oct 2024 | 78.5 | 0.45 | 15.12 | 832,000 | 0.21 | 13.09 | 609,000 |
| Rest of SA | 0.57 | 12.07 | 449,000 | 0 | Oct 2024 | 75.1 | 0.6 | 12.45 | 457,000 | 402,000 | ||
| Perth | 0.32 | 20.58 | 773,000 | 0 | Oct 2024 | 79.2 | 0.28 | 20.52 | 835,000 | 0.69 | 21.12 | 555,000 |
| Rest of WA | -0.15 | 13.58 | 543,000 | -0.26 | Aug 2024 | 71.8 | -0.17 | 14.07 | 568,000 | 0.09 | 8.11 | 406,000 |
| Hobart | 0 | -0.93 | 683,000 | -8.4 | Mar 2022 | 35.6 | 0.01 | -0.86 | 719,000 | -0.08 | -1.25 | 570,000 |
| Rest of Tas. | 0.12 | 1.46 | 521,000 | -0.2 | May 2024 | 55.3 | 0.14 | 1.58 | 541,000 | -0.13 | 0.2 | 450,000 |
| Darwin | -0.04 | 1.46 | 512,000 | -1.34 | May 2022 | 27.4 | -0.04 | 2.15 | 584,000 | -0.01 | -0.76 | 375,000 |
| Rest of NT | -0.03 | 0 | 421,000 | -4.42 | Dec 2022 | 10 | -0.03 | 0.58 | 467,000 | 316,000 | ||
| ACT | 0.29 | -0.09 | 845,000 | -5.42 | Mar 2022 | 36.2 | 0.47 | 0.72 | 969,000 | -0.44 | -3.25 | 612,000 |
“July’s tax cuts have boosted borrowing capacities and buyers’ budgets, which has supported growth. The persistent rise in home values has also motivated many to overcome affordability challenges and transact,” said Creagh.
“Though home price growth regained speed in October, elevated interest rates and affordability constraints are weighing. Buyers now have more properties to choose from, and uncertainty around the timing of interest rate cuts remains. Still, prices are expected to remain on the rise as the busier selling season closes out.”
Meanwhile, CoreLogic’s national Home Value Index recorded a 0.3% increase over October for the 21st month of growth on the index since last February.
CoreLogic took a less growth-positive take on the current housing market, noting the cooling of annual growth to 6.0% over the 12 months ending October.
This reflects a fall from the recent peak in annual growth of 9.7% as recorded in February.
By CoreLogic’s HVI, Sydney joined Darwin’s 1.0% decline, Canberra’s 0.3% and Melbourne’s 0.2% with a slight 0.1% drop in the NSW capital.
“A combination of less borrowing capacity and broader affordability challenges, as well as a higher-than-average share of investors and first home buyers in the market is the most likely explanation for stronger conditions across the lower value cohorts of the market,” said Tim Lawless, research director at CoreLogic.
“The past three months has seen the lowest quartile either record a higher growth rate or smaller decline relative to the upper quartile or broad middle of the market across every capital city except Canberra.”
Corelogic also has the mid-size capitals leasing the pace of value growth, though these cities are also seeing moderating momentum.
Perth recorded a 1.4% rise in values over the month, with Adelaide up 1.1% and Brisbane up 0.7%, with the latter recording its slightest gain since July.
This slowing growth was also paired with an increase in stock levels, based on a rolling four week count of listings to 27 October, which was up 12.7% since the end of winter.
“Total listings are now 13.2% above the previous five-year average in Sydney and 13.0% higher in Melbourne,” added Lawleess.
“Despite the rise in listings across the mid-sized capitals, Perth, Adelaide, and Brisbane are still seeing advertised stock levels more than -20% below the five-year average for this time of the year. These markets remain well and truly in favour of sellers, although the balance is starting to gradually improve.”
The number of home sales is also moderating, with capital city sales activity in the three months ending October down 7.5%.
While capital city auction clearance rates held below the 60% mark throughout the majority of October.
