Sourced from PropTrack Home Price Index
01/09/2023
National home prices rose again in August, jumping a further 0.28%. National prices are now 2.64% higher than a year ago and up 3.51% so far this year.
All capitals, except Darwin (-0.38%), saw prices rise in August. Adelaide (+0.64%) led gains through the month, followed by Sydney (+0.47%) and Perth (+0.31%).
Home price growth has been stronger in the capital cities than in regional areas this year. This trend continued in August, with regional areas lifting a small 0.09% while capital city prices rose 0.35%. Home prices in the capital cities are now up 4.46% since December 2022, compared to just 1.20% in regional areas. With capital city markets leading the home price recovery and regaining the majority of 2022’s price falls, regional markets have now seen a larger decline from the peak.
“August marked the eighth consecutive month of national home price growth. This is the longest period of consecutive monthly growth since the pandemic boom when prices rose for 23 months straight between May 2020 and March 2022. National home prices have now regained the majority of price falls seen in 2022.”
“For much of this year, stronger housing demand and a limited flow of new listings hitting the market have offset the impact of interest rate rises. Limited choice in Brisbane, Adelaide, and Perth, has led to strong buyer competition and solid selling conditions, pushing prices to fresh peaks in August.”
“As more new listings come to market over spring, we may see the pace of home price growth start to slow. However, with interest rates stabilised and likely near or at their peak, the confidence in the market is likely to sustain, resulting in more of the country returning to positive annual price growth.”
Perth home prices bucked the falling price trend seen in most markets for much of last year and have continued to climb this year. So far in 2023, prices are up 6.22%, after rising 0.31% in August to a new peak. Home prices in Perth are up 7.57% from their level a year ago, making Perth the strongest-performing capital city market over the past year. After Darwin, Perth is the cheapest capital city market in terms of dwelling values. The relative affordability of the city’s homes and limited choice for buyers have supported prices.
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