According to the latest report from the Australian Financial Review, the real estate markets in major Australian cities like Sydney, Perth, Brisbane, and Adelaide have demonstrated strong growth momentum over the past 12 months. Data shows that despite factors like interest rate hikes, reduced affordability, and rising living costs, detached house prices in hundreds of suburbs across these cities have risen by over 20%.
Particularly noteworthy is the performance of the Perth market, with 147 suburbs experiencing price increases of at least 20%. This achievement is mainly attributed to the growth in net migration, limited supply, and relatively low price levels. In some suburbs in Perth's southeast and southwest areas, such as Armadale, Camillo, and Hillman, detached house prices have surged by 40.7%, 34.6%, and 30.3%, respectively. Additionally, according to assessments by AMP's chief economist Shane Oliver, Perth's property prices are only overvalued by 9%, making it the least overvalued capital city in Australia.
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In Sydney, areas like the inner southwest, inner west, and Parramatta have also shown strong growth trends. The median house price in Wiley Park has grown by 27% annually, while areas like Canterbury, Narwee, and Banksia have seen increases ranging from 20.3% to 25.2%. Despite significant price rises, the median price for detached houses remains below $1.8 million Australian dollars, highlighting the limited affordability for buyers.
Cities like Brisbane and Adelaide have also seen many suburbs with price rises exceeding 20%. Areas like Logan - Beaudesert and Moreton Bay have performed well in Brisbane, while in Adelaide, cheaper suburbs in the northern region like Elizabeth North and Munno Para have achieved increases of over 20%.
Experts anticipate that Perth, Brisbane, and Adelaide will continue to perform well in the coming months. With current shortages in housing supply in these cities, property prices are expected to face continued upward pressure. Arjun Paliwal, Research Director at InvestorKit, points out that these capital cities still have many affordable suburbs, making them likely to continue leading other cities.
