According to the latest PropTrack House Price Index, the median property price nationwide rose by a further 0.22% in November, reaching a new all-time high. Despite an increase in newly listed homes, the simultaneous growth in housing demand has led to a slowdown in the rate of price growth.
Property prices in Sydney, Brisbane, Adelaide, and Perth have hit new highs, as well as regions in Queensland, South Australia, and Western Australia.
Eleanor Creagh, Senior Economist at PropTrack, stated that despite more properties entering the market, strong housing demand, record net overseas migration, a tight rental market, low unemployment rates, and the driving factor of rising home values have offset the impact of interest rate hikes this year. All capital cities, excluding Darwin, recorded rising property prices, with Perth seeing a 0.74% increase month-on-month.
Sydney is at the forefront of the recovery in the Australian real estate market, not only recovering losses from 2022 but also surpassing the previous peak in February 2022 by 1%. From February 2022 to November, prices fell by 6.8%, but have risen continuously for 12 months, up 8.4% from the low point in November 2022.
Thomas McGlynn, CEO of Bresic Whitney, stated that despite uncertainty in interest rates, the Sydney market remains quite resilient. "While we've seen more properties listed in the second half of this year, it's still not enough to meet buyer demand," he said. "I think the key driver of the year-long rise in house prices is the availability of properties."
McGlynn noted that they are starting to see buyers behaving more cautiously. "Prices are still fair. Although buyers are more cautious in negotiations, they still want to get quality properties," he said.
Melbourne's property market has seen a slight increase, with prices rising by 0.04% in November and only a 1.39% increase over the past 12 months. Nevertheless, Melbourne's property market is still 3.71% below the peak in March 2022, lagging behind Sydney and other cities in price recovery.
Since hitting bottom in January 2023, Melbourne's property prices have risen by 1.92%, leading the recovery pace compared to Hobart, indicating a gradual but steady improvement in Melbourne's real estate industry.
Brisbane's property prices have rebounded from last year's decline, rising by 0.20% in November to a new peak. The current prices have risen by 8.85% compared to the same period last year, with an 8.91% increase from the beginning of the year to the present.
CEO of Harcourts Queensland, Peereboom, stated that Brisbane offers a popular lifestyle for various people. "In the past 12 months, we've seen a decrease in properties available on the market, so the choices available have decreased," he said. "But there's still strong buyer demand to experience the Brisbane lifestyle, leading to more intense competition and significantly driving up sale prices." Mr. Peereboom said sellers are confident when listing their homes for sale because they know there are ready buyers looking for homes in Brisbane.
In terms of year-on-year growth, Perth has consistently been Australia's strongest market, growing by 12.76% compared to a year ago. Property prices in Perth rose by 0.74% in November, marking the 17th consecutive month of increases, reaching a new high.
Ben Keevers, Head of Ray White Keevers Group in Perth's northern beaches area, stated that the lifestyle, relative affordability, and tight rental market support property prices in the city. "Compared to other capital cities in Australia, Perth still offers great value," he said. "I believe there's still a lot of upward potential in Perth's property prices, especially compared to the east coast."
Adelaide's property prices are also steadily rising, with a 0.22% increase in November, resulting in a 7.65% rise compared to the same period last year. This indicates that the Australian real estate market is consistently rising, with different regions showing varying degrees of growth momentum.
