House and unit prices rise nationally, but capital city performance varies significantly
Median house prices rose by 0.2% over the quarter and 6.2% over the year to reach $1.05 million, according to the Real Estate Institute of Australia (REIA).
The peak body has reported an uptick in national property prices in its September 2024 edition of the Real Estate Market Facts report, which reflected varied dynamics across the nation’s capital cities.
“Sydney, Melbourne, Adelaide, and Perth experienced increases, ranging from 0.1% in Melbourne to 0.9% in Perth,” said REIA president Leanne Pilkington (pictured above). “We’re expecting a slowdown, particularly in Sydney where clearance rates have started to drop.
“Brisbane, Canberra, Hobart, and Darwin saw decreases, with Canberra recording the largest decline of 2.7%. Sydney remains the most expensive city, with a median house price of $1.65 million, while Darwin remains the most affordable at $561,000.”
The REIA report also highlighted a 0.9% quarterly increase in the national median price for other dwellings, which include units and apartments, bringing the median to $686,459. Over the year, this segment saw a 5.5% rise.
Perth led the capitals with the strongest growth in this category at 4.1%, while Canberra recorded the largest quarterly decline of 5.5%. Sydney continued to be the priciest city for other dwellings, with a median of $815,258, while Darwin remained the most affordable at $373,000.
Rental market tightens
Median rents for three-bedroom houses rose nationally by 2% during the September quarter, with an annual increase of 9.2%, bringing the weekly median to $623. Sydney recorded a significant 4.3% quarterly rise, reflecting ongoing demand pressures.
For two-bedroom dwellings, rents saw a modest national increase of 0.5% over the quarter and 7.3% annually. Adelaide and Hobart recorded the highest growth at 2.2%.
Vacancy rates edged up slightly, rising 0.1 percentage points over the quarter to a weighted national average of 1.7%. Rates varied widely across capital cities, from 0.7% in Adelaide to 4.2% in Darwin. Pilkington said the tightest markets, such as Adelaide, continue to drive rental price increases.
Investor activity gains momentum
Household investor finance rose by 1.9% during the September quarter, while owner-occupier finance declined by 0.6%. Investor lending now accounts for 38.7% of total housing finance.
“These figures demonstrate the evolving nature of Australia’s property market, where both opportunities and challenges emerge depending on the location and asset type,” Pilkington said.
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