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House prices were mixed in capital cities across the country, with Sydney and Melbourne seeing substantial upswings.
The latest Domain House Price Report shows Sydney’s market in the September quarter has had a strong return after its steepest downturn since the 1980s.
The median house price lifted by 4.8 per cent and units were up by 2.6 per cent.
“Houses have regained almost one-third of the price falls that occurred during the recent downturn, and units have regained roughly one-fifth of the price lost over the recent slump. Despite this rebound, both house and unit prices remain lower than a year ago,” Domain senior research analyst Dr Nicola Powell said.
It was a similar scene in Melbourne, with the median house price up by 4.1 per cent and units up by 3.7 per cent.
“Houses have now regained almost half of the price falls that occurred during the recent downturn. Prices tumbled by 10.7 per cent from the December 2017 record high to the trough reached at the beginning of the year. Prices are now just 5.9 per cent below the peak,” Dr Powell said.
There was also positive news in Hobart, with house prices up by 1.3 per cent and units up by 1.7 per cent.
However, it was a mixed bag in Darwin, where house prices were up and units were weaker. It was the reverse in Perth where the median house price dropped by 1 per cent and units were up by 2.8 per cent.
“Perth remains firmly a buyers’ market. House prices are 14.4 per cent below and unit prices are 18.2 per cent lower than the 2014 record highs. Buyers are benefiting from lower mortgage costs and a subtle loosening of lending standards, which could entice some to take advantage of the market conditions,” she said.
The markets in Adelaide, Brisbane and Canberra all soften, with unit prices taking most of the hit. The median unit price was down by 3.4 per cent in Brisbane, down by 4.4 per cent in Canberra and by 5.2 per cent in Adelaide.
“South Australia’s weaker jobs market has weighed on demand: unemployment has been rising for more than a year, the second highest rate behind Queensland. The state’s economic growth has also waned, largely tied to declines in government expenditure,” Dr Powell said.
