Australian Housing Market Sees Nearly Double the Rate of Price Increase Compared to the US
Australian house prices have risen by 10 percent in a year on average across all capital cities, CoreLogic data shows.
In contrast, data released on Jan. 30 reveal house prices in the United States have jumped half this amount, by 5.1 percent in a year.
In Australia, Perth properties have soared the most of any capital city in the last year, while Hobart and Darwin prices fell slightly. Melbourne prices also only rose modestly, compared to other major cities.
Sydney home values have surged 11.4 percent, Brisbane by 14.8 percent, and Perth by a mammoth 16.7 percent in a year, the data (pdf) shows.
Adelaide prices have soared 10.3 percent, while Melbourne properties have moved 3.9 percent in a year, as of Jan. 31, 2024.
Canberra properties rose by 1.2 percent, while Darwin prices fell by 0.1 percent with Hobart slipping 0.4 percent in a year.
Median Value of Home $836,000
The median value of a home was $836,013 (US$550,000) across combined capital cities in Australia as of Jan. 31, 2024.
Sydney’s median home value is $1.12 million, while a property costs $842,971 in Canberra and $796,818 in Brisbane.
In Melbourne, the median value of a home is $777,250, dropping to $721,376 in Adelaide, $676,823 in Perth, $651,807 in Hobart, and $501,520 in Darwin.
The combined median value of properties in regional areas of Australia was $605,085 as of Jan. 31, 2024.
CoreLogic research director Tim Lawless singled out Perth as a standout among capital cities due to its persistent rate of capital gains.
In the past quarter, combined capital house prices have risen 1 percent, while regional home values have lifted 1 percent.
“While both the combined capitals and combined regional markets are losing momentum in the pace of value growth, the capital city trend has slowed more sharply, mostly due to the flattening of growth conditions in Melbourne and Sydney,” Mr. Lawless said.
“The rise in property prices appears to be continuing into the new year, with house prices in both capitals and regional areas, lifting 0.4 percent in January.
More than 115,000 Properties Sold in January Quarter
Core Logic estimates 115,241 properties were sold in the quarter ending Jan. 31, 11.9 percent higher than the same time last year and 0.5 percent more than the five-year average.
AMP chief economist Shane Oliver, reflecting on the data in a post to X, noting the divergence across cities.
US House Prices Rose 5.1 Percent Over the Year
Meanwhile, in the United States, the US S&P Core Logic Case-Shiller Index released (pdf) on Jan. 30 showed house prices rose 5.1 percent in the year up to November 2023.
However, for the first time, the U.S. National Index and 20-city composite showed a 0.2 percent month-on-month fall.
“Once again, Detroit reported the highest year-over-year gain among the 20 cities with an 8.2 percent increase in November, followed again by San Diego with an 8 percent increase. For the third month in a row, Portland fell 0.7 percent and remained the only city reporting lower prices in November versus a year ago,” Mr. Luke said.
