Another quarter, another national house price record broken – but the median price for other dwellings in the ACT, such as flats, has declined.
The Real Estate Institute of Australia’s (REIA) latest Real Estate Market Facts reports house prices have increased at the highest rate they’ve seen in two decades, rising 25.1 per cent across Australian capital cities during the 12 months ending December 2021.
An annual increase higher than 20 per cent hasn’t occurred in almost 20 years, since June 2002, said REIA President, Hayden Groves.
In the December quarter, Mr Groves said, the weighted average median house price for all eight capital cities increased to $1,021,710.
“Over the quarter, the median house price increased in all capital cities except Darwin. At $1,601,467, Sydney’s quarterly median house price continues to be the highest amongst the capital cities, 56.7 per cent higher than the national average,” Mr Groves said.
“At $525,000, Perth remains the most affordable with the lowest median house price across Australian capital cities, 48.6 per cent lower than the national average. With WA opening the borders, it will be interesting to watch how this might impact on property prices.”
Meanwhile, the weighted average median price for other dwellings, such as villas and flats, for the eight capital cities increased to $658,577, a quarterly increase of 1.8 per cent.
“Over the quarter, the median price for other dwellings increased in Sydney, Melbourne, Brisbane, Perth, and Hobart but declined in Adelaide, Canberra, and Darwin.
“At $802,255, Sydney’s median price for other dwellings continues to be the highest amongst the capital cities, 21.8 per cent higher than the national average. At $412,500, Adeliade has the lowest median price for other dwellings across Australian capital cities, 38.2 per cent lower than the national average.”
The weighted average capital city median price for other dwellings saw a lower increase than houses, but still a rise nonetheless, at 1.5 per cent over the 12 months to the December quarter, Mr Groves said.
“Over the December quarter, the weighted average median rent for three-bedroom houses in the eight capital cities increased to $471 per week, a quarterly increase of 1.5 per cent,” he said.
“The median rent for three-bedroom houses increased in all capital cities except Sydney, where it remained stable and Darwin where it decreased by 3.7 per cent.
“During the quarter, the weighted average median rent for two-bedroom other dwellings increased to $435 a week. The median rent increased in all capital cities except in Sydney, where it remained stable, and Darwin, where it decreased 0.5 per cent.”
Mr Groves is confident that property investment is still secure, with regional activity remaining strong and property seeming to still be a ‘go to’ investment destination as global uncertainty continues to grow.
“Regional markets have generally enjoyed a period of sustained growth with key centres like Wollongong (30.4 per cent), Launceston (49.3 per cent), Sunshine Coast (32.9 per cent), and Mt Gambier (14.9 per cent) recording large annual increases,” he said.
“Household investor finance increased by 13.4 per cent in the December quarter with investors continuing to enter the market confidently in this phase of the COVID-10 pandemic.”
The latest Australian Bureau of Statistics (ABS) latest report is consistent with the REIA’s findings, showing the strongest annual property price growth on record.
Canberra saw an annual increase of 28.8 per cent in residential property prices in the 2021 December quarter – the second highest of any Australian capital city.
ABS Head of Prices Statistics, Michelle Marquardt, said, “House price growth continues to outpace price growth for attached dwellings. House prices rose 27.5 per cent through the year, while prices of attached dwellings rose 14 per cent.”
In the December 2021 quarter, Canberra’s residential property prices rose by 6.4 per cent, the fourth highest growth among Australian capital cities.
The mean dwelling price in the ACT sits at $979,600, the second highest mean in the December 2021 quarter, eclipsed only by Sydney.
The total value of Australia’s 10.8 million residential dwellings nationally rose by $512.6 billion to $9,901.6 billion in the 2021 December quarter. Since the 2020 December quarter, the value of Australia’s residential dwellings increased by $2,015.1 billion.
“Results were consistent with a range of housing market indicators. New lending commitments for housing rose to a record high value in the December quarter 2021. Days on market fell and sales transaction volumes increased. Record low interest rates and strong demand have continued to support growth in property prices,” Ms Marquardt said.
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