Property prices record strongest annual growth on record

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on March 15, 2022 Fact Checked
Property prices record strongest annual growth on record

Recording the strongest annual growth since September 2003, residential property prices rose 23.7% through the year with Hobart leading from the front.

Residential Property Price Index data released on Tuesday by the ABS revealed all capital cities recorded an annual rise in residential property prices. 

Capping off a year of unprecedented growth, the total value of Australia’s 10.8 million residential dwellings rose $512.6 billion to $9,901.6 billion in the December quarter.

NSW holds approximately 41% of the total value of all residential dwellings in Australia at a figure of $4,014.1 billion. 

ABS Head of Prices Statistics Michelle Marquardt said house price growth continues to outpace price growth for attached dwellings.

"House prices rose 27.5% through the year, while prices of attached dwellings rose 14.0%," Ms Marquardt said.

Recently, ANZ Economists forecast house prices will continue to climb north in 2022 with an average national property price growth of 6% expected, before falling 4% in 2023. 

Across the year (12 months to December quarter of 2021):

  • Hobart residential property prices increased 29.8%
  • Canberra residential property prices increased 28.8%
  • Brisbane residential property prices increased 27.8%
  • Sydney residential property prices increased 26.7%
  • Adelaide residential property prices increased 23.9%
  • Melbourne residential property prices increased 20%
  • Perth residential property prices rose 15.7%
  • Darwin residential property prices rose 13.0%

ResidentialPropertyPriceIndex.jpg

The ABS reports in the December quarter alone residential property prices rose 4.7%, with the strongest quarterly price growth recorded in Brisbane at 9.6%, followed by Adelaide at 6.8%, Hobart at 6.5% and Canberra at 6.4%.

"New lending commitments for housing rose to a record high value in the December quarter 2021," Ms Marquardt said. 

"Days on market fell and sales transaction volumes increased as record low interest rates and strong demand have continued to support growth in property prices."

Further, the ABS revealed the the average price of residential dwellings in NSW rose to be the highest in the country by $47,700 to $1,207,200.

The second highest average price was in the ACT at $979,600, followed by VIC at $956,100. 


Image by Digital Marketing Agency NTWRK via Unsplash. 

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Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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