In January 2024, Australia experienced continued growth in its housing market, as reflected by a 0.4% increase in CoreLogic’s national Home Value Index (HVI). This marks the 12th consecutive month of rising property values, surpassing the 0.3% gains observed in November and December. However, the performance varies across the country, with Melbourne, Hobart, and Canberra seeing slight declines (-0.1%, -0.7%, and -0.2% respectively), while Perth, Adelaide, and Brisbane values continued to rise at a monthly rate of 1% or more.
Perth stands out among the capital cities with a persistently rapid rate of capital gains, recording a 1.6% increase in January. Despite a 16.7% rise in home values over the past 12 months, Perth’s housing prices remain relatively affordable, with a median dwelling value just below $677,000.
The gap between house and unit values reached a record high of 45.2% in January, with house values rising at a faster rate. Capital city house values have surged 11.0% higher since the upswing began, outpacing unit values, which increased by 6.9%.
Regional markets are exhibiting stronger value growth trends compared to capital cities. The combined regional index rose by 1.2% over the rolling quarter, outperforming the combined capitals index, which saw a 1.0% rise.
Despite worsening housing affordability, the volume of home sales remained slightly above average over the past three months, with 115,241 dwellings sold. This represents an 11.9% increase compared to the same period last year and is 0.5% above the previous five-year average. CoreLogic attributes this resilience in the housing market to factors such as high migration, tight rental markets, and potential renters transitioning towards homeownership if financially feasible.
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