Property prices see strongest quarterly growth in 18 years

author-avatar By on September 14, 2021
Property prices see strongest quarterly growth in 18 years

Residential property prices rose 6.7% in the June quarter, the strongest quarterly growth since the series began in 2003.

The figures from the Australian Bureau of Statistics (ABS) found every capital city recorded a rise in dwelling values, at a rate rarely seen before in most cities. 

Canberra prices were up 8.3%, its strongest ever rise; Sydney saw its second ever biggest rise (8.1%); Hobart saw its strongest rise since the December 2003 quarter (6.3%); and Melbourne its biggest rise since the December 2009 quarter (6.1%). 

Brisbane (5.7%) and Adelaide (5.3%) saw the largest quarterly rise since the June and December 2007 quarter, respectively. 

ABS Head of Prices Statistics Michelle Marquardt said the growth was largely driven by house price growth in expensive suburbs. 

"The continued growth in property prices was occurring at a time of record low interest rates," Ms Marquardt said.

"Persistently low levels of stock on the market were being met with strong demand and properties transacting at an increasingly rapid rate.

"With the exception of Hobart and Darwin, capital cities continued to see house price rises outpace those of attached dwellings such as apartments and units, with price growth for both property types being driven by the upper segments of the market."

Housepricejun01.jpg

Source: ABS.

For the first time, Australia's mean house price of residential dwellings has breached $800,000, rising by $52,600 to $835,700. 

New South Wales continued to have the highest mean price of residential properties at $1,093,100, followed by the Australian Capital Territory ($891,700), and Victoria ($891,500). 

Combined capital city house prices rose by 7.7% and attached dwelling prices rose 4.3%. 

Canberra was the only capital to experience record quarterly growth in its house price index and apartment prices, up 8.9% and 6.0% respectively. 

The total value of Australia’s 10.7 million residential dwellings rose by $596.4 billion to $8,924.6 billion in the quarter, the largest quarterly rise on record. 

More to come...


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Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
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VariableMore details
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Rates correct as of September 27, 2021. View disclaimer.



Photo by Jon Callow on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

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.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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Alex joined Savings.com.au as a finance journalist in 2019. He enjoys covering in-depth economical releases and breaking down how they might affect the everyday punter. He is passionate about providing Australians with the information and tools needed to make them financially stable for their futures.

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