Australia’s housing prices dropped over the June quarter as rising interest rates and inflation impacted affordability but not all cities and regions are experiencing price contractions. These are the findings of the Real Estate Institute of Australia’s (REIA) latest Real Estate Market Facts.
Combined, the June quarter of 2022 saw a decline in the weighted average capital city median price for both houses and other dwellings across the Australian residential property market. The weighted average capital city median price decreased by 1.8% for houses and 0.6% for other dwellings.
The weighted average median house price for the eight capital cities fell to $1,012,230 over the quarter. The median house price increased in Brisbane, Adelaide and Darwin remained stable in Perth and declined in Sydney, Melbourne, Canberra and Hobart. Increases ranged from 0.4% in Darwin to 2.6% in Adelaide.
“This defies the Reserve Bank’s recent comments on potential house price falls and simply demonstrates 2022 market conditions are the adjustment ‘we had to have’, Hayden Groves, President at REIA, the professional body for Australia’s real estate sector, said.
“At a median sale price of $1,552,015, Sydney’s median house price continues to be the highest amongst the capital cities, 53.3% above the national median” Groves added. “At $530,000, Perth offers great value with the lowest median house price across Australian capital cities, 47.6% lower than the national median. Over the 12 months to the June quarter, the weighted average capital city median house price increased by 9.2%. Whilst a significant gain, this is the lowest annual increase since the December quarter 2020.”
According to Mr Groves, the weighted average median price for other dwellings for the eight capital cities dipped to $651,142, a quarterly fall of 0.6 per cent. Over the quarter, the median price for other dwellings rose in Brisbane, remained stable in Adelaide, Canberra and Darwin and declined in Sydney, Perth, Melbourne and Hobart.
At $790,983, Sydney’s median price for other dwellings continues to be the highest amongst the capital cities, 21.5 per cent higher than the national median. At $410,000 Perth has the lowest median price for other dwellings across Australian capital cities, 37.0 per cent lower than the national median.
“Over the 12 months to the end of June, 2022 the weighted average capital city median price for other dwellings increased by one percentage point” he said.
Established in 1924, REIA is a federated body of State & Territory Real Estate Institutes representing 85% of Australian real estate agencies.
