Mid-sized capitals in Australia are experiencing notable growth in home values. In May, home values increased by 2.0% in Perth, 1.8% in Adelaide, and 1.4% in Brisbane. This translates to a rise of over $12,000 in median dwelling values in each of these cities.
Other capital cities showed varied performance, with Sydney values up by 0.6%, while Hobart and Darwin saw declines of -0.5% and -0.3%, respectively.
Tim Lawless, research director at CoreLogic, attributes the strong growth in Perth, Adelaide, and Brisbane to extremely low supply levels. In these cities, the number of properties for sale is more than 40% below the five-year average, and in Brisbane, listings are 34% below average.
Despite an increase in vendor activity compared to last year, the high demand is quickly absorbing new listings, maintaining low inventory levels and driving prices up.
In contrast, Hobart has seen listings increase by 41% above the five-year average due to lower demand, with home sales 6.4% below the previous five-year average over the past quarter.
May witnessed notable changes in Australia’s housing market. Brisbane surpassed Canberra to claim the second-highest median dwelling value, a position it hadn’t held since 1997. This shift was preceded by Brisbane overtaking Melbourne’s median values in January, marking the first time since 2008. The pandemic catalyzed Brisbane’s growth, outpacing Melbourne and even Canberra.
Sydney also saw a recovery in May, reaching its previous peak from January 2022 after a -12.4% decline. However, growth rates vary across market segments, with the upper quartile showing slower growth compared to more affordable options, except in Darwin.
Overall, while upper quartile dwelling values increased by 6.7% over the past year, lower quartile values surged by 13.4%, indicating stronger conditions in the affordable segments.
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