House prices have increased at the highest rates in two decades, according to new research by the Real Estate Institute of Australia’s (REIA).
The peak body’s latest Real Estate Market Facts report reveals that prices have risen by more than a quarter (25.1%) for the twelve months ending December 2021.
REIA President Hayden Groves said the weighted average median house price for the eight capital cities lifted to $1,021,710 in the December quarter.
“Over the quarter, the median house price increased in all capital cities except Darwin”, Groves noted.
“At $1,601,467, Sydney’s quarterly median house price continues to be the highest amongst the capital cities, 56.7% higher than the national average.
“At $525,000, my home town of Perth remains the most affordable with the lowest median house price across Australian capital cities, 48.6% lower than the national average”, he said, adding that, with Western Australia finally opening the borders it will be interesting to watch how that impacts property prices.
Groves remarked that this is the first time since June 2002 that the annual increase has been higher than 20.0%.
“The weighted average median price for other dwellings, such as villas and flats, for the eight capital cities increased to $658,577 a quarterly increase of 1.8%.”
Over the quarter, the median price for other dwellings increased in Sydney, Melbourne, Brisbane, Perth and Hobart but declined in Adelaide, Canberra and Darwin.
At $802,255, Sydney’s median price for other dwellings continues to be the highest amongst the capital cities, 21.8% higher than the national average, while on $412,500, Adelaide has the lowest median price for other dwellings across Australian capital cities, 38.2% lower than the national average.
According to Groves, the average capital city median price for ‘other dwellings’ increased to $471 per week, over the 12 months to the December quarter, a rise of 1.5% over the quarter.
“Over the December quarter, the average median rent for 3-bedroom houses in the eight capital cities increased to $471 per week, a quarterly increase of 1.5%”, he said.
The median rent for 3-bedroom houses increased in all capital cities except Sydney, where it remained stable and Darwin where it decreased by 3.7%.
“During the quarter, the weighted average median rent for 2-bedroom other dwellings increased to $435 a week. The median rent increased in all capital cities except in Sydney, where it remained stable and Darwin where it decreased 0.5%”, Groves noted.
The report shows that investor and regional activity remained strong with property seen to be a ‘go to’ investment amidst global uncertainty.
Regional markets have generally enjoyed a period of sustained growth with key centres like Wollongong (30.4%), Launceston (49.3%), Sunshine Coast (32.9%) and Mt Gambier (14.9%) recording large annual increases.
In conclusion, Groves noted that investors continue to enter the market confidently, with investor finance increasing by 13.4% in the December quarter.
