Prices of houses in major Australian cities at record high

Prices of houses in major Australian cities at record high

• Posted By David Brown

House prices have increased considerably in all of Australia’s Capital cities, Sydney, Melbourne, Adelaide, Brisbane, Canberra and Hobart with all six at a record high in the third quarter and two again at their highest point in several years.     

Melbourne and Canberra are now Australia’s million-dollar cities along with Sydney, with the harbour city going past $1.4 million.    

The rate of growth in Canberra is 30 per cent in just a year, turning Perth into Australia's most affordable Capital for houses.

Adelaine, Hobart, Brisbane along Canberra, Melbourne, and Sydney are the record holders. The South Australian capital growth over the June quarter was the strongest since 2007, and in greater Brisbane, the 13 % annual growth is the strongest in 13 years.        

The results from Domain’s latest quarterly House Price Report emphasize the rising prices which may further aggravate prospective first home buyers.   

Capital city median house price, June quarter

• House prices reach a record median of $1,410,133 – rising more than $1,200 in a day in just three months.
• Perth is now Australia’s most affordable capital city to buy a house.
• Melbourne’s median house price jumps 16.2 percent in a year to record. $1,022,927

Unit Median prices in Australia’s Capital Cities                                    

Unit prices have increased in Melbourne, to a record high also in Canberra and Sydney where Median unit prices are higher than in Brisbane, Adelaide, Perth Hobart and Darwin's despite their recent rapid gains.                         

The rate of price growth was unsustainable, said Dr Nicola Powell Domain chief of research and economics.                                                                                       

Dr. Powell said surging house prices are disrupting the great Australia dream. Many people instead will have to look at units out of necessity rather than choice.

Conclusion:                                                                                                                                                                                    

• We are now seeing a good opportunity for housing when Brisbane will host the 2032 Olympics. The years prior to the Olympic Games will have a positive impact on the housing market.                                                                                
• Government spending and investment in the city will have a tremendous impact on jobs and economic growth which will encourage interstate migration.
• Stimulus and activity will put pressure on renting buying, but the outlook for prices is positive. It is a wake-up call for first time home buyers to understand our median home price has increased dramatically. 
• Units do offer affordability. There is an increase in units purchases in Sydney whether through value or the fact that some buyers must shift to units because they cannot afford to buy a house, regardless if they are First Home Buyers or not.
• More townhouses need to be built to address affordability.