The Australian housing market has reached a significant milestone, with the average dwelling price exceeding $1 million for the first time, according to recent data from the Australian Bureau of Statistics (ABS). As of the March quarter, the national average dwelling price is reported at approximately $1,002,500, marking a notable increase from previous years. The total value of residential properties across Australia has now surged to $11.4 trillion, reflecting a quarterly rise of $130.7 billion, or 1.2 per cent, since December.
Five years prior, the entire housing market was valued at around $7.3 trillion, highlighting the rapid appreciation in property values. While prices continue to rise, the rate of this increase has slowed, with annual growth for the March quarter down to 5.9 per cent, compared to 9.5 per cent during the same period last year. Dr Mish Tan, head of finance statistics at the ABS, noted that despite these slower increments, downward trends in property values appear unlikely, especially with further interest rate cuts anticipated throughout the year.
New South Wales continues to be home to the most expensive real estate, with an average price set at $1.25 million. The Australian Capital Territory (ACT) saw a decline in its average home price to approximately $941,300, while Queensland has now overtaken it with an average of $944,700, positioning it as the second most expensive market in the country. The rise in property values has been primarily attributed to markets in Western Australia, South Australia, and Queensland.
Conversely, the Northern Territory remains the most affordable housing market, with an average price of $517,700, showcasing the stark contrasts within the Australian real estate landscape. Overall, the trajectory of the housing market indicates continued interest from buyers, although they may face a negotiating environment that is shifting with more favourable conditions likely on the horizon.