In May 2024, property prices have increased by 8.3% in Australia on an annual basis, as a lack of supply is apparently fuelling house price growth, data from real estate consultancy CoreLogic has revealed. On a monthly basis, prices grew by 0.8%, the 16th consecutive month of growth and the largest monthly gain since October last year.
Australia now ranks at 22 out of 33 member countries of the Organisation for Economic Co-operation and Development (OECD) when comes to providing housing.
The mid-sized capitals continued to lead the pace of growth, with Perth home values up 2.0% in May, Adelaide rising 1.8% and Brisbane up 1.4%. In dollar terms, it’s the equivalent of the median dwelling value rising by more than $12,000 month-to-month in each city, CoreLogic said. The Sydney market also reached a new milestone in May, posting a nominal recovery, equaling the earlier record high set in January 2022. Sydney dwelling values dropped by -12.4% following the January 2022 peak, finding a floor a year later. The market has since posted a 14.1% rise through the cycle to-date. Currently, the median home value in Sydney is just under AUD 1.16 million.
Rachel Ong ViforJ, economics professor at Curtin University, in an interview with the Sydney Morning Herald, noted that the impact of new housing supply on the market is slow and limited. “New housing supply only adds to the existing housing stock a bit at a time, so it will take a long time for new housing supply to have any positive impact on affordability. The majority of our housing stock is made up of established dwellings,” she said.
The professor further noted that due to the limited speed of new home construction, additional measures are needed to optimize the existing housing stock and also highlighted common supply-side solutions to address the current housing shortage and promote long-term stability and sustainable development in the market.
Corelogic’s indices are Australia’s authoritative source on home price trends.
