Property price cooldown? Melbourne and Canberra decline, Sydney plateaus

author-avatar By
on April 28, 2022 Fact Checked
Property price cooldown? Melbourne and Canberra decline, Sydney plateaus

New data from Domain revealed Melbourne and Canberra median house prices dropped over the March quarter, while Sydney rose by 0.2%.

The Domain House Price report showed the rate of growth is slowing in Australia's three most expensive capital cities, whilst Brisbane, Hobart and Adelaide all continued to rise over the most recent quarter. 

According to the report, Sydney house prices are 0.2% higher over the quarter to $1.59 million, showing the weakest outcome since prices declined in the June quarter of 2020.

"Sydney’s housing market slowdown became more apparent over the first quarter of 2022," the report said.

"House prices flatlined and unit prices declined to provide the weakest outcome since the June quarter of 2020 and one of the most significant slowdowns in all the capital cities."

In Melbourne, house prices decreased by 0.7% over the quarter to $1.09 million, it is the first decline since the June quarter of 2020.

In Canberra, house prices declined 0.9% over the quarter to just over $1.12 million. This is the first time house prices have fallen over a quarter since March 2020 - however they are still 21.1% higher than the same time last year.

Median House Price 

City March-22 Dec-21 March-21 Quarterly Change Annual Change
Sydney $1,590,932 $1,588,423 $1,314,383 +0.2% +21.0%
Melbourne $1,092,144 $1,099,419 $981,401 -0.7% +11.3%
Brisbane $831,346 $806,117 $629,499 +3.1% +32.1%
Adelaide $750,084 $728,342 $585,384 +3.0% +28.1%
Canberra $1,124,952 $1,134,678 $929,201 -0.9%
+21.1%
Perth $622,030 $612,926 $592,537 +1.5% +5.0%
Hobart $758,141 $727,099 $604,103 +4.3% +25.5%
Darwin $635,389 $647,156 $543,246
-1.8%
+17.0%
National $1,069,289 $1,062,537 $902,829 +0.6% +18.4%

Source: Domain

More affordable markets surge on

While the nation's three most expensive markets have slowed over the March quarter, Hobart, Brisbane and Adelaide have continued to see strong growth. 

Brisbane is the fastest-growing capital city market according to the report. Over the past 12 months house prices have risen 32.1%, adding over $200,000 to reach a new record high of $831,346.

Just north of Brisbane, the Sunshine Coast now has a median house price of over $1 million after 12 consecutive quarters of increases.

Adelaide house prices increased for the seventh consecutive quarter up 3% to a new record high of $750,084. This is the steepest house price upswing ever to be recorded for the city, at 28.1% over the past 12 months.

House prices in Hobart rose 4.3% over the quarter to a new record high of $758,141. This is the seventh consecutive quarter of growth and prices are 25.5% higher annually.


Advertisement

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

  • $5000 Cashback. T&Cs Apply.
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
NO ONGOING FEESFREE REDRAW FACILITY
  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.
NO ONGOING FEESFREE REDRAW FACILITY

Live-in Variable Loan (Principal and Interest) (LVR < 90%)

  • Rate Match Guarantee. Tic:Toc will match the rate on identical variable P&I home loans. T&C's Apply.

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 29, 2022. View disclaimer.


Photo by saritjokro on Pixabay

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

Latest Articles

author-avatar
Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

Collections:

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy