Two-speed market enjoys 8% growth

Australian dwelling values increased a further 0.7% in June, taking growth to 8% across the financial year ending June 30.

The CoreLogic data suggests the median average value increase for every Australian property was $59,000.

The average price of a home – any residence, be it a house, apartment or duplex – is now $794,000.

The analysis of the financial year contrasts with the figures just one year ago when CoreLogic's national index was down -2%.

Then, we saw a -7.5% drop in values because the Reserve Bank of Australia had started hiking interest rates in May 2022.

The peak of this year's growth came 12 months ago when the quarterly rate of change was 3.3%.

The most recent June quarter saw dwelling values rise by 1.8%, which is in line with the March (1.9%) and December quarters (1.8%).

CoreLogic's research director Tim Lawless said: “Persistent growth comes despite an array of downside risks, including high rates, cost of living pressures, affordability challenges and tight credit policy.”

He said the housing market's resilience was due to tight supply levels “keeping upward pressure on values”.

While most regions across Australia are trending higher in value, Melbourne and regional Victoria are exceptions. Their values were down -0.2% and -0.3% respectively in June. Hobart is suffering from flat conditions.

At the other end of the spectrum, Perth values surged 2% in June to be 23.6% higher over the financial year. Adelaide values increased 1.7% to be 15.4% higher and Brisbane values were up 1.2% to be 15.8% higher.

The growth trends are reflected in depressed advertised stock levels, according to CoreLogic.

In June, the number of homes advertised for sale in Perth was 23% lower than at the same time last year and 47% lower than the city's five-year average. Adelaide (-43%) and Brisbane (-34%) also recorded below-average listings.

Conversely, Melbourne listings were 14% above its five-year average, and Hobart tracked 46% above its average.

Paulette Contessi

Director/Licensee

CONTESSI PROPERTIES