City Living, Pyrmont.
R&H
You are viewing an article that is not currently active

Australian home prices rise fastest since 1988

January 9, 2022

According to CoreLogic, Australian capital city dwelling prices climbed another 0.6% in December, bringing the 2021 increase to 21%, the strongest year since 1988. 

 According to a report from AMP, average capital city prices are now 18.6% above their previous record high in September 2017, and they are 23.2% above their recent low in September 2020.

 The Brisbane and Adelaide real estate markets are the current stars as we start the new year. In December, prices boomed 2.9% in the Queensland capital and 2.6% in Adelaide. 

 Brisbane (27.4%) and Hobart (28.1%) prices recorded their fastest calendar year gains since 2003, and Adelaide and Canberra produced their best calendar year gains since CoreLogic started keeping records.

 “All capital city prices are at record levels except for Perth and Darwin. Perth and Darwin prices are at their highest since 2015 and 2016 respectively though,” said Shane Oliver, Head of Investment Strategy and Chief Economist, AMP.

 “Regional dwelling price growth remained unchanged at a very strong 2.2%mom in December and rose 25.9% in 2021, reflecting ongoing demand for regional property on the back of coronavirus and the working from home phenomenon, which has all seen a refocus on quality-of-life considerations. These factors drove regional prices to their fastest calendar-year gain since 1981.”

 The most popular regional markets have seen housing values rise more than 30% over the calendar year. The Southern Highlands and Shoalhaven recorded the highest annual rise in home values at 37.7%, followed by Queensland’s Sunshine Coast at 33.7%.

 Rents record the fastest uptick since 2008

 Nationally, dwelling rents increased by 9.4% over the 2021 calendar year, the most significant annual increase since the 12 months ending January 2008. Unit rents were up 7.5% over the year compared to the 10.1% lift recorded in house rents.

 Rental growth trends across the unit sector have generally been milder than houses. Unit rentals are disproportionately affected by stalled overseas migration and domestic rental preferences shifting away from higher-density options through the pandemic. However, these trends are changing as rental affordability diverts demand back towards the unit sector. 

Australian dwelling price growth

 

December % change

12 mths to Dec, % change

Sydney

0.3

25.3

Melbourne

-0.1

15.1

Brisbane

2.9

27.4

Adelaide

2.6

23.2

Perth

0.4

13.1

Hobart

1.0

28.1

Darwin

0.6

14.7

Canberra

0.9

24.9

Capital city average

0.6

21.0

Capital city houses average

0.8

23.9

Capital city units average

0.2

12.6

Regional average

2.2

25.9

National average

1.0

22.1

Source CoreLogic