Australian Home Prices Soar to Unprecedented Levels, Surpassing Sales Surge

Australian home prices have reached unprecedented levels, surpassing the sales surge. The latest data reveals that the national median price surged to a record high in September. Read more about the soaring home prices in Australia.

Australian homes have reached unprecedented levels of affordability, with the latest data revealing that the national median price surged to a record high in September. According to the PropTrack Home Price Index, the declines experienced last year, driven by rising interest rates, have been completely erased across most parts of the country. Consequently, the cost of a typical Australian home has soared to its highest level ever. In September alone, Australia's median home price jumped by 0.35%, while the capital city median increased by 0.41%. This growth is significant, especially considering that buyers had a wider range of property options to choose from last month.

Australian Home Prices Soar to Unprecedented Levels, Surpassing Sales Surge | ogusyis

The surge in prices was most pronounced in Perth, Sydney, Adelaide, and Brisbane, which saw growth rates of 0.71%, 0.48%, 0.48%, and 0.39% respectively in September, building on the strong gains from the previous month. Perth, Adelaide, and Brisbane are now at record highs, while Sydney's prices remain just below the peak recorded in February 2022. Conversely, prices experienced a decline in regional Victoria and the Northern Territory, while witnessing a slight decrease in Darwin and regional Tasmania. Despite this, the regional median price increased by 0.18% in September, currently sitting 0.78% below the previous record. However, prices in regional South Australia and Queensland have reached record highs.

The remarkable rebound of prices in Sydney is worth noting, as they have increased significantly since bottoming out in November 2022. The median value of homes in Sydney has risen by a staggering 7.43%, experiencing growth for 10 consecutive months. As a result, Sydney's median home value currently stands at $1.057 million, just 0.03% below its previous peak. The City and Inner South, North Sydney and Hornsby, and Parramatta SA4 regions experienced the fastest growth, with annual price increments of approximately 9% each.

Melbourne, on the other hand, still trails by more than 4% from its peak in March 2022. However, the city has recently recorded positive annual price growth for the first time since 2022, with median prices now standing 0.07% higher than a year ago. The recovery in Melbourne has been primarily driven by pricier regions, such as the Inner East, where values rose by about 4% in the past year. Additionally, the Outer East experienced a 3% growth, while the Inner South witnessed a 2% increase.

Brisbane is now home to the highest median value ever recorded, with prices soaring by 5.82% over the past year. However, the city's southern and western regions, known for their affordability, have witnessed stronger growth. Furthermore, the total number of properties for sale in Brisbane has decreased by approximately 14% compared to a year ago. In terms of specific regions, the Brisbane-South and Ipswich regions experienced a 9% price increase over the year, followed closely by Logan-Beaudesert, with growth of 7%.

Perth, the strongest performing capital city in Australia’s property market, continues to experience a booming market. The median values in Perth jumped by 0.78% in September, reaching a new record high of $597,000. Over the past year, the city has experienced a remarkable 9.24% growth in prices, and an astonishing 53.5% increase since March 2020. One of the factors driving such strong demand is the affordability of homes in Western Australia, according to the PropTrack Housing Affordability Report. The South East and Mandurah regions of Perth witnessed exceptional growth of 12% over the past year, while the pricier inner suburbs saw a more modest 4% increase.

Adelaide has also seen consistent growth in home prices, rising by 0.48% in September, resulting in a median value of $689,000. When considering the past year, Adelaide's prices have soared by a rate that outpaced all other capital cities, except for Perth, experiencing an impressive 8.31% increase. The most notable performance occurred in Adelaide's north, where prices rose by 12% in the past year. Additionally, the intensified competition in the market can be attributed to low stock levels, which remain lower than a year ago, despite the increase in properties coming to market in recent months.

Canberra's housing market has experienced a slower recovery compared to other capitals, with prices inching up by 0.30% in September, resulting in a median value of $842,000. Although prices remain 5.18% below the peak in March 2022, they have still risen by more than 36% since the start of the pandemic.

Hobart's prices have shown a slight increase of 0.09% in September. However, compared to the previous downturn, prices in Hobart have not yet fully recovered. Buyers currently have a wider selection, with 32% more properties on the market than at this time last year. Over the past year, the median price has fallen by 3.83% and 6.6% since the peak. Despite these recent declines, prices have still surged by 38.4% since March 2020. Adelaide, Perth, and Brisbane are the only capital cities that have witnessed a more rapid rate of growth since that time.

In contrast, Darwin experienced a flat market in September, with a slight decrease of 0.01% in the median price. This makes Darwin the only capital city where values declined during September. Over the past year, prices in Darwin have dropped by 1.64%, and since the peak in May 2022, values have decreased by 2.43%.