Australian property prices have experienced an upward trend for the fifth consecutive month, with a rise of 0.6 per cent recorded in June, according to CoreLogic data. Notably, this increase was widespread across most regions, except for Hobart, which experienced a marginal decrease of 0.2 per cent in property values.
The last recorded decline in national property prices was between November and January, where values dropped by 0.3 per cent. The renewed momentum in the housing market has been attributed primarily to declining interest rates, as noted by CoreLogic’s research director, Tim Lawless. He highlighted that the first rate cut in February marked a significant turning point in housing value trends, with subsequent cuts in May further boosting positive market sentiment.
While the current resurgence in property values is evident, Lawless pointed out that the growth rate remains modest compared to earlier in 2023, when quarterly growth reached a peak of 3.3 per cent. At the height of the pandemic, growth peaked even higher at 8.1 per cent quarterly.
Darwin has emerged as a standout performer among capital cities, witnessing a remarkable 4.9 per cent increase in dwelling values over the last quarter, with property prices rising by 1.5 per cent in June alone, reaching a new all-time high that surpasses the previous peak from May 2014 during the mining boom. Close behind, Perth and Brisbane saw increases of 2.1 per cent and 2 per cent, respectively, while Sydney and Melbourne both reported a 1.1 per cent rise in property values over the same period.
Despite the resurgence in the housing market, sales remain relatively low, which has created a more balanced environment for both buyers and sellers. Recent data indicates auction clearance rates have improved, settling around the mid-60 per cent range, above the decade average.
Looking ahead, the quarterly data suggests national house prices could increase by 5.8 per cent in the coming year, slightly above the decade’s average growth of 5.2 per cent. Lawless cautioned, however, that while the potential for further growth exists as interest rates decline, affordability challenges are likely to limit the scale of any significant upswing in the housing market.