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Australia’s National Home Price Hits a Fresh Record
Australia’s national home price has reached a new record despite declines in two capitals and two regions, cementing its status as the most expensive country for property buyers.
National Home Price Reaches $787,000
The price of a mid-range home across Australia is now $787,000, marking a fresh record after a 6.55% increase over the past year, according to the latest PropTrack Home Price Index released Monday. The report found that while the pace of growth is slowing on a monthly basis (0.18% in June), national prices have risen 10.14% since their December 2022 low.
Resilience of Australia’s Housing Market
Australia’s housing market confidence has defied the pandemic and interest rate rises.
PropTrack economist Eleanor Creagh noted that the national record price has increased every month for a year and a half. However, she mentioned signs of potential easing ahead, given “the pace of monthly growth was the slowest since December 2022”.
“National home prices have cycled through 18 consecutive months of growth despite high interest rates, hitting another fresh peak in June,” she said.
“It’s certainly no mean feat given it’s been during the most substantial interest rate tightening cycle in a generation, and yet we’ve still seen that in many markets, home prices have largely recovered from the declines experienced when interest rates first began to rise in 2022 and have continued to hit fresh peaks.”
Capital Cities Outpacing Regions
Unlike the pandemic era boom, capital cities are now outpacing regions for growth, with increases of 6.91% versus 5.61%, bringing median prices to $855,000 and $643,000 respectively.
Perth Leads in Price Growth
Investor magnet Perth saw the highest price growth, up 22.52% in FY24 to $713,000. The second highest growth was also in Western Australia, where regional prices rose 16.27% to $504,000.
Three parts of Perth outperformed the city’s growth rate:
- South West: 26.37% rise to $733,000
- North West: 24.71% increase to $758,000
- South East: 24.7% growth to $681,000
Two other areas of Greater Perth also showed strong growth:
- North East: 21.24% rise to $673,000
- Mandurah: 21.2% increase to $595,000
Regional Northern Territory Experiences Declines
Regional Northern Territory experienced the most significant fall in home prices among all regions and capitals, with a -3.72% drop over the past year to $399,000.
Despite this, prices have grown 8.9% across the rest of the Northern Territory since the pandemic, compared to a 29.1% rise in the capital Darwin during the same period.
Darwin saw its first monthly decline, dropping -0.11% in June to $477,000. Annually, it has experienced a 2.63% rise, with May 2024 being its peak.
Capital City Highlights
Sydney
Despite being the most expensive city in Australia, Sydney continues to set new records, with its median home price rising 6.39% over the past year to $1.107 million.
Brisbane
Brisbane has set a new record home price, establishing itself as the second most expensive capital city to buy a dwelling, with its median price hitting $840,000 for the first time.
Melbourne
Melbourne experienced the most significant decline among mainland capitals over the past year, dropping to become the fourth most expensive city for property in Australia.
Adelaide
Adelaide has achieved a new record home price of $759,000 after rising 14.61% over the past year, marking the strongest growth pace in the country behind Western Australia.
Hobart
Hobart saw the most significant decline among Australian capitals in the past year, with prices dropping -2.06% to $671,000, and new indications of when this will stabilize.
SOURCE: NEWS.COM.AU