The property market has become a "multi-speed market" with some capital cities experiencing quarterly house price growth, while others continue to decline.
Sydney's historic annual price fall has concluded, and Adelaide has reached a new record house price. Perth's prices have also hit an all-time high, while Canberra's prices persist in falling after their steepest-ever decline at the end of 2022.
Based on the latest real estate market insight, the combined capital city median house price increased by 0.4% over the March quarter, reaching $1,020,191. The house prices rose in Sydney (1.3%), Adelaide (0.4%), and Perth (1.2%). Melbourne's house prices experienced a marginal 0.5% decrease, while Brisbane's prices dipped by 0.1%.
Smaller capital cities showed signs of "weaker conditions," with the most significant price falls observed in Canberra (down 2.5%) and Darwin (down 3.1%). In the December quarter, the Australian Capital Territory experienced its steepest-ever house price decline.
Australia's housing market has returned to a multi-speed market, with different markets growing at varying rates. This shift presents opportunities for buyers and sellers in different locations. Historically, larger capital cities tend to lead the property market recovery as they typically reach peak prices earlier and fall more rapidly.
There are still risks ahead, and the recovery remains fragile, but some capital cities have stabilised or are experiencing rising conditions. Sydney's housing market, especially in premium suburbs, is experiencing a recovery with increased competition in areas such as the Eastern Suburbs, Lower North Shore, and Inner West, causing prices to rise. These areas are witnessing increasing competition, leading to price hikes.
Sydney is further along the price cycle compared to smaller capital cities such as Canberra and Hobart, which have seen the most significant declines from their respective price peaks.
Sydney's housing market is improving, with house and unit prices growing moderately. House and unit prices grew, although the growth rate is currently considered moderate. Median house price: $1,459,856
Melbourne's house prices are nearing the bottom of the price cycle. Buyers and sellers are more aligned with each other's price expectations. Median house price: $1,023,116.
Brisbane's market has stagnated with the 0.1 per cent price decrease considered a flatline. Median house price: $805,818
Adelaide house prices have risen for the 11th consecutive quarter, equating to almost three years of continuous price growth. However, the pace is slowing. Buyers in Adelaide have faced a new record house price every four months for nearly three years.
Canberra's decline rate has slowed.
Perth's house prices have reached a record level, but growth has become fatigued.
Hobart is experiencing its longest stretch of price drops in history, and Darwin's house prices have dropped at their fastest rate since 2022.
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