Property prices see strongest quarterly growth in 18 years

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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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Disclaimers

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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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