Australian house prices recorded further growth in the June quarter, helping to recover half the value lost in 2022’s downturn, Domain’s quarterly House Price Report found.
Across the capital cities, house prices jumped around $27,500, or 2.7%, last quarter.
“The continued mismatch between supply and demand has been a fundamental contributor to the price recovery currently being experienced in the Australian housing market,” said Dr Nicola Powell, Domain’s chief of research and economics.
“This has been fuelled by an unseasonably weak flow of new listings and rising demand - with the total number of homes for sale 22% below the five-year average for the combined capitals.”
House prices in Sydney led the way, increasing by 5.3% last quarter, while those in Adelaide rose 2.8%.
|
Capital city |
Median house price |
Quarter-on-quarter change |
Year-on-year change |
|
Sydney |
$1,538,017 |
+5.3% |
+0.1% |
|
Melbourne |
$1,027,996 |
+0.4% |
-4.4% |
|
Brisbane |
$823,272 |
+0.9% |
-4% |
|
Adelaide |
$813,842 |
+2.8% |
+5.3% |
|
Canberra |
$1,034,057 |
+0% |
-11.9% |
|
Perth |
$690,468 |
+2.2% |
+5.4% |
|
Hobart |
$709,275 |
+1.2% |
-6.9% |
|
Darwin |
$642,212 |
+1.9% |
-0.7% |
|
Combined capitals |
$1,049,812 |
+2.7% |
-1.3% |
When it comes to units, the combined capitals saw prices rise for the first time since late 2021.
The median unit price was $608,898 in the capitals last quarter – a 2.6% quarter-on-quarter improvement.
Meanwhile, Brisbane and Adelaide saw unit prices reach record highs last quarter, with the median unit in the cities priced at $478,370 and $449,548 respectively.
“However, the tide is gradually changing, as the flow of new listings improves, likely spurred by the persistent pricing recovery or homeowners selling due to the higher debt costs,” Dr Powell said.
Nearly a third of Australian homeowners are estimated to be at risk of mortgage stress, Roy Morgan recently found.
The situation could worsen if the Reserve Bank of Australia lifts rates by another 0.25% at Tuesday’s meeting, according to Roy Morgan CEO Michele Levine.
“[If that happens] Roy Morgan forecasts mortgage stress is set to increase to over 1.51 million mortgage holders considered ‘at risk’ by August 2023,” she said.
While the number of new listings hitting the market is lower than the long-term average, there’s been a notable improvement on recent troughs.
“As housing confidence improves, and as the mortgage cliff unravels, we could begin to see a slowdown in price growth as listings continue to rise, and those looking to buy have greater choice,” Dr Powell said.
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