Housing market feeling the heat
The summer heat was felt all the way through to the property market in the final months of last year.
The latest report from the Real Estate Institute of Australia (REIA) found that the median Australian home price has continued to climb over the December quarter 2023.
Across Australia’s eight capital cities, the median house price rose 1.8 per cent on average and 1.8 per cent for other dwellings, including units.
REIA president Leanne Pilkington noted that while this rate of increase is steep, “over the 12 months to the December quarter, the national median price for houses increased at a more stable rate of 5.3 per cent.”
For both houses and other dwellings, Sydney remained the most expensive city for home buyers.
Pilkington said: “At $1,595,310 the median price for a house in Sydney continues to be higher than in the other capital cities, 58.7 per cent higher than the national median”.
She added that “at $795,994, the median price for other dwellings in Sydney continues to be the highest among the capital cities, 20.8 per cent higher than the national median”.
On the other end of the spectrum, Darwin offered lower prices for buyers. The Northern Territory capital saw a median house price of $560,000, 44.3 per cent lower than the national median.
“The lowest median price for other dwellings is found in Darwin, which at $405,000 is 38.5 per cent lower than the national median,” said Pilkington.
Over the December quarter, the median price for houses increased in Sydney, Brisbane, Adelaide, Perth, Canberra and Hobart, with increases ranging from 1.1 per cent in Canberra to 7.5 per cent in Perth.
Melbourne and Darwin were the only cities to see a decrease in the median house price.
“Median prices for other dwellings increased in all capital cities except in Melbourne and Hobart, where prices decreased,” said Pilkington. “Increases ranged from 0.8 per cent in Canberra to 4 per cent in Adelaide.”
For Aussie renters, median prices also rose over the quarter. As of December 2023, the median rent for a three-bedroom house had risen to $585 per week.
The largest quarterly increase for a three-bedroom house was seen in Darwin, which witnessed a 6.8 per cent rise over the quarter, compared to just 2.6 per cent for the nation as a whole.
Median rents for three-bedroom houses “increased in all capital cities except Sydney, where it remained stable,” while median rents for two-bedroom houses increased in Brisbane, Canberra, Hobart and Darwin, and remained stable elsewhere.
“Adelaide continues to have the tightest rental market with a 0.5 per cent vacancy rate,” Pilkington said. “Darwin has the highest vacancy rate at 2.9 per cent followed by Melbourne at 2.3 per cent.”
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