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National median house prices climb to over $1 million, while rental rates surge amid contrasting market trends across capital cities.
The September 2024 edition of the Real Estate Market Facts (REMF) report, published by the Real Estate Institute of Australia (REIA), revealed that the national median prices for houses and other dwellings rose during the quarter.
Nationally, the median house price increased by 0.2 per cent over the quarter and 6.2 per cent over the year to $1,050,370.
REIA president Leanne Pilkington noted that this edition of the report highlighted a shift in dynamics across the capital city markets, with trends varying significantly across different locations.
“Sydney, Melbourne, Adelaide and Perth experienced increases, ranging from 0.1 per cent in Melbourne to 0.9 per cent in Perth.”
In other major capitals, the decreases that have been witnessed over the past few months continued.
“Brisbane, Canberra, Hobart and Darwin saw decreases, with Canberra recording the largest decline of 2.7 per cent,” Pilkington said.
Sydney continues to be the most expensive city, with a median house price of $1,654,668, while Darwin remains the most affordable at $561,00.
Pilkington noted that the national median price for other dwellings, which encompasses units and apartments, increased by 0.9 per cent over the last quarter and 5.5 per cent on an annual basis, reaching a total of $686,459.
Most capital cities experienced upward trends in median prices, with Perth demonstrating the highest growth at 4.1 per cent. In contrast, Canberra, Hobart and Darwin reported declines, with Canberra registering the most significant decrease of 5.5 per cent.
Sydney remains the most expensive city for other dwellings, with a median price of $815,258, while Darwin remains the least expensive, listed at $373,000.
Rental price rises continue
During the September quarter, the median rents for three-bedroom houses increased nationally by 2 per cent and by 9.2 per cent over the year to $623 per week.
Pilkington highlighted that Sydney’s quarterly rental growth of 4.3 per cent was particularly noteworthy, indicating sustained demand in the market.
Meanwhile, rent for two-bedroom homes experienced a slight national rise of 0.5 per cent in the last quarter and a yearly increase of 7.3 per cent. The most significant growth was noted in Adelaide and Hobart, where rents went up by 2.2 per cent.
Pilkington noted that this report uncovered that national vacancy rates experienced a modest uptick, increasing by 0.1 percentage point over the past quarter to reach a weighted average of 1.7 per cent.
“The range across capital cities was significant, from 0.7 per cent in Adelaide to 4.2 per cent in Darwin,” she said.
Pilkington highlighted that an ongoing inverse relationship between vacancy rates and rental prices continues to play out, with tight markets in cities like Adelaide driving higher rental prices.
“Household investor finance increased by 1.9 per cent in the September quarter, but owner-occupier finance decreased by 0.6 per cent. The proportion of lending to households for investment in housing is 38.7 per cent.”
Pilkington noted that these figures demonstrate the changing dynamics of Australia’s property market, highlighting that varying opportunities and challenges arise based on location and asset type.
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