Australian homes returned the strongest annual growth in property prices on record during 2021, according to data released this week by the Australian Bureau of Statistics (ABS).
The latest figures show that residential property prices rose 23.7% through the year to December quarter 2021, the strongest annual growth since the Residential Property Price Index series began in the September quarter 2003.
All capital cities recorded an annual rise in the December quarter 2021.
Hobart (up by 29.8%), Canberra (up 28.8%), Brisbane (27.8%), Sydney (26.7%), and Adelaide (23.9%) had the biggest rise since the commencement of the series, in the September quarter 2003.
Melbourne (up 20%) had the largest annual rise since the June quarter 2010.
Perth rose 15.7% and Darwin rose 13.0% through the year.
ABS Head of Prices Statistics Michelle Marquardt noted that house price growth continues to outpace attached dwellings.
“House prices rose 27.5% through the year, while prices of attached dwellings rose 14.0%”, she said.
In the December quarter 2021, residential prices lifted 4.7%. The strongest quarterly growth was recorded in Brisbane (up 9.6%), followed by Adelaide (6.8%), Hobart (6.5%), and Canberra (6.4%).
“Results were consistent with a range of housing market indicators”, Marquardt said.
“New lending commitments for housing rose to a record high value in the December quarter 2021, while days on market fell and sales transaction volumes increased.
“Record low interest rates and strong demand have continued to support growth in property prices”, she concluded.
The total value of Australia’s 10.8 million residential dwellings rose by $512.6 billion to $9,901.6 billion in the December quarter 2021.
The value of residential dwellings has risen $2,015.1 billion since the December quarter 2020, with the mean price growing to $920,100, up from $876,100 in the September quarter 2021.
