The Australian housing market continues to experience upward pressure on prices, with the smaller capital cities demonstrating particularly strong performance. According to the latest property price report published by Domain, the December Quarter saw price increases in five out of the eight capital cities.
Darwin stood out with the most significant median price increase of 3.3%, with Perth a distant second at 1.1%. Melbourne recorded growth at 0.7%, Hobart at 0.6%, and Adelaide at 0.2%. Among these five capital cities, all except Melbourne witnessed price growth throughout the past 12 months.
On the other hand, three capital cities resisted any upward trends. Sydney’s median property prices experienced a decline of 2.1% during the quarter, Brisbane a decrease of 1.8%, and Canberra witnessed a 0.3% drop.
The Domain analysis highlights the December Quarter as a slowing of market downturn. The combined capital city median value dipped by a mere 0.7%. The report suggests, “This indicates that the peak rate of the quarterly decline has passed, as the September Quarter bore the brunt of the initial shock of rising interest rates and exorbitant inflation levels causing house prices to fall at the fastest quarterly rate on record”.
The Australian housing market has displayed a mixed performance in the recent quarter, with property prices in the majority of the capital cities continuing to rise. Smaller capitals, in particular, have shown impressive growth. However, property investors should take note of the price drops in Sydney, Brisbane, and Canberra.
The market downturn during the December quarter shows some promise that the worst of the decline may have passed. Consequently, it will be interesting to observe how the Australian housing market evolves in the upcoming months, particularly in light of economic factors such as interest rates and inflation levels.
If you would like further info on the current state of the market then our property investment advisors Melbourne are here to help.
