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Canberra has seen the most significant rise in median house prices over the September quarter, according to new research.
The Real Estate Institute of Australia (REIA) said that the country’s housing market proved to be resilient over 2020 despite the impacts of the pandemic, with price rises recorded in most states over the past quarter.
Australia’s weighted average capital city median price for both houses and other dwellings has increased over the September 2020 quarter, the latest Real Estate Market Facts report by the REIA found.
REIA president Adrian Kelly said that over the September quarter, the weighted average capital city median price increased by 0.4 of a percentage point for houses and by 0.7 of a percentage point for other dwellings.
Over the year to September 2020, the average capital city median house price rose by 3.6 per cent to $773,760, while other dwellings grew by 2.9 per cent to $596,751.
Across capital cities, median house price increased over the September quarter, except for Melbourne (-1.7 per cent). However, over the year, Melbourne showed remarkable resilience through stage 4 lockdown, recording an increase of 1.3 per cent.
Meanwhile, at $1,154,406, Sydney’s median house price continues to be the highest among the capital cities, 49.2 per cent higher than the national average.
In contrast, Perth and Darwin have the lowest median house price across Australian capital cities at $480,000, 38.0 per cent lower than the national average.
Mr Kelly noted that the largest increase over the past year was in Canberra at 10.6 per cent.
The Australian Capital Territory, bolstered by the lowest jobless rate, also rose by 3.9 per cent in the last quarter.
Brisbane increased by 1.7 per cent over the past quarter and 2.1 per cent in the past year, while Adelaide’s median house price rose by 3.1 per cent in the last quarter and 4 per cent over the last 12 months.
In the west, Perth house prices increased by 0.8 of a percentage point in the quarter but recorded a decrease in the last year.
Tasmania also experienced record highs for houses in Hobart, with a quarterly jump in house prices by 1.9 per cent — the best growth since late 2017.
Rents, too, increased in all capital cities except Melbourne, Adelaide and Canberra, where they remain stable, according to Mr Kelly. On the other hand, Perth rents increased by 5.9 per cent due to very tight demand.
Vacancy rates for rental properties in Sydney have increased substantially over the past year, with Sydney at 4.3 per cent and Melbourne recording 3.7 per cent.
“The challenges of 2021 remain significant with the continued resumption of mortgage deferrals, the lasting impacts of new foreign policy settings for residential property and the uncertain future of international tourism, international students and immigration,” Mr Kelly concluded.
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