Australia’s housing market hit a new peak in March, with national home prices experiencing an upturn that’s led to record-setting annual growth across several cities, notably Perth, PropTrack reported.
According to the PropTrack Home Price Index for March, home prices nationally rose by 0.34% last month, a 1.57% increase for the year and a 6.79% rise compared to March 2023.
“The home price upswing persisted in March, and prices reached a record high nationally,” said Eleanor Creagh (pictured above), PropTrack senior economist. “Despite an increase in the number of homes hitting the market this year, demand has absorbed the surge leading to further price increases.”
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Home prices in the combined capital cities climbed by 0.4%, reaching a new high, with an annual increase of 7.64% from last year. Perth (+0.99%), Canberra (+0.67%), and Brisbane (+0.41%) led the charge with the most significant monthly price increases.
Smaller capital cities have continued to outshine their larger counterparts, with Perth, Adelaide, and Brisbane setting new records for annual growth rates, at 18.62%, 13.47% and 12.90%, respectively. Perth witnessed its strongest year-on-year home price gains since records began in 2010.
While capital city markets have surged ahead, regional markets have also seen growth, albeit at a slower pace, with regional SA (+0.64%) and regional Queensland (+0.49%) leading the growth in March. Meanwhile, prices in regional Victoria saw a decline of 0.35%.
With the Reserve Bank keeping the cash rate steady at 4.35% in March and speculation about potential rate cuts, Creagh said the housing market is expected to remain buoyant. However, challenges such as rising construction costs and material shortages could affect the supply of new housing, influencing future market dynamics.
Sydney's home prices reached a new peak in March, with a notable rebound in growth as buyer demand absorbed the increase in new listings.
Brisbane continued to showcase strong market performance, with significant annual growth and a robust start to 2024.
Leading the country in both monthly and annual growth, Perth’s housing market benefits from a combination of factors including affordability, population growth, and tight rental markets.
Darwin's market showed a modest increase in March yet remains below its peak levels from May 2022.
Melbourne’s market is experiencing a gradual recovery, with March showing positive growth, though prices remain below their 2022 peak.
Adelaide stood out for its consistent performance, with home prices reaching new highs driven by comparative affordability and low stock levels.
Hobart's market has seen a slight decline in March, continuing as the weakest capital city market in terms of annual price growth and change from its peak.
Canberra’s market is on a path to recovery, with prices in March indicating the strongest annual growth since September 2022.
Visit the PropTrack website to download its Home Price Index reports.
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