Australia’s housing market proves resilient over 2020 with price rises in most states

Australia’s weighted average capital city median price for both houses and other dwellings has increased over the September 2020 quarter, the latest Real Estate Market Facts report by REIA has found.

REIA President, Mr Adrian Kelly said over the September quarter, the weighted average capital city median price increased by 0.4% for houses and by 0.7% for other dwellings

“Over the year to September 2020, the average capital city median house price rose by 3.6% to $773,760 while other dwellings grew by 2.9% to $596,751.

“The median house price increased in all capital cities over the September quarter, except for Melbourne (- 1.7%) although over the year, Melbourne showed remarkable resilience through State 4 lockdown recording an increase of 1.3%.

“At $1,154,406, Sydney’s median house price continues to be the highest amongst the capital cities, 49.2% higher than the national average.

“Perth and Darwin have the lowest median house price across Australian capital cities at $480,000, 38.0% lower than the national average,” he said.

Mr Kelly said the largest increase over the past year was 10.6% in Canberra. The Australian Capital Territory, bolstered by the lowest jobless rate, rose 3.9% in the last quarter.

“Brisbane increased 1.7% over the past quarter and 2.1% in the past year while Adelaide’s median house price rose 3.1% in the last quarter and 4% over the last 12 months. In the west, Perth house prices increased 0.8% in the quarter but recorded a decrease in the last year.

“Not to be outdone, Tasmania experienced record highs for houses in Hobart – the best growth since late 2017, and a quarterly jump in house prices by 1.9%. he said.

Mr Kelly said that rents too increased in all capital cities except Melbourne, Adelaide and Canberra where they remain stable with Perth rents increasing 5.9% due to very tight demand.

“Vacancy rates for rental properties in Sydney have increased substantially over the past year with Sydney at 4.3% and Melbourne recording 3.7%.

“The challenges of 2021 remain significant with the continued resumption of mortgage deferrals, the lasting impacts of new foreign policy settings for residential property and the uncertain future of international tourism, international students and immigration,” he said.

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