A look at Australia’s rising property prices

Published on September 01, 2021 05:07 PM AEST

A look at Australia’s rising property prices — Image source: OSORIOartist, Shutterstock.com

Highlights

Australian property prices continue to improve amid rising COVID-19 cases in the country.
In August the dwelling prices increased 1.5%, the lowest rise since January 2021.
Experts believe the dwelling prices to surpass AU$9 trillion mark.

Australian property prices continue to rise amid rising COVID-19 cases in the Country. According to Media reports, total residential real-estate in Sydney was around AU$2.5 trillion and ~AU$1.7 trillion during the start of 2021. The total property prices for Brisbane, Adelaide, Perth, Hobart, Darwin, and Canberra were ~AU$1.7 trillion. In May 2021, the total value of Australia’s residential real estate surpassed AU$8 trillion. Although the property prices are easing gradually, still experts believe that the prices might surpass AU$9 trillion mark.

As per the reports of Corelogic, dwelling prices increased 1.5% in August. The rate of growth is still above the average price. However, it is the lowest monthly rise since January 2021. Other than Darwin, there was a growth in property prices throughout August 2021.

The rate of price growth was at its peak during March 2021 and is gradually moderating. During March 2021, the national home values have improved by 2.8% during the month. In Sydney, the dwelling values increased by 3.7%.

Also Read: How have Australian housing prices fared in July?

Source: Company Announcement, 1 September 2021

Over the past one year, housing prices improved ~ 11 times faster than the wages growth during the same time frame. Thus, it has created a barrier for most people looking for owning a home. The annual increase in national dwelling values is equal to ~ AU$1,990 per week.

Capital city houses are continuing to record stronger growth compared to units. Throughout Q1 2021, the value of the capital city houses grew 1.1% faster than units every month. By August 2021, the average performance gap declined to 0.7% points.

Over the recent months, advertised supply and housing demand were negatively impacted due to lockdowns and seasonal factors. The projected number of home sales declined nationally over three months ending 31 August 2021. Although there was a drop in sales, housing market activity remains above market levels.

Further, there are strong selling conditions in auction clearance rates and private treaty measures. Despite, the recent trend of fewer buyers, still, the number of home sales is 30% above the five-year average at the time when active listings are -29% below average.

The rate of rental growth has softened over recent months. However, the trend in rising rents remains strong. Over the past 12 months ended 31 August 2021, the rents have improved by 8.2%.

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