Domain's House Price Report has revealed that the combined capital city average house price rose over the March quarter.

Since the peak at roughly this time last year, the Australian property market has experienced a mostly uninterrupted downturn as higher interest rates reduced demand.

After the December quarter, the combined average capital city house price was $1,016,628, increasing to $1,075,210 by the end of March, a 0.4% increase.

This remains below the historical average of 2.6% growth.

Which areas are leading the way?

House prices in Sydney, Adelaide and Perth are up since the start of the year.

Sydney appears to have turned a corner after the steepest peak-to-trough decline on record, while the market in Perth is now at an all time high.

The markets in Melbourne and Brisbane have held steady, while the smaller capitals - Canberra, Darwin and Hobart - saw prices drop.

In Canberra and Hobart, the drop in prices was more moderate than September to December, suggesting these markets are also beginning to turn around.

Only Darwin saw the negative growth rate accelerate in the March quarter.

Dr Nicola Powell, Domain’s Chief of Research and Economics, says that this disparity is a positive sign.

"Australia’s housing market has now fully reverted back to a multi-speed market, meaning different markets are growing at different rates as they were pre-pandemic. This provides opportunities for both buyers and sellers in different locations, " Dr Powell said.

House prices capitals march 23.JPG

All the way back up?

March's upturn has defied popular sentiment that the property market would continue to fall throughout this year.

Except April's pause, interest rates have continued to increase, which in theory puts downward pressure on property prices with the high cost of borrowing putting prospective buyers off.

Dr Powell called this release a 'timely reminder' that interest rates are not the only determinant to the demand for property.

"Population growth is rebounding faster than anticipated, with record levels of overseas migration playing a driving role in our housing markets. Extremely tight rental markets are also making purchasing more attractive and may shift some to buy, given the current challenges of securing a lease,” she said.

Low supply has also been a key factor in keeping prices bouyant. 

The number of properties for sale is almost 15% below the five year average, which is likely a byproduct of potential sellers choosing to hold while property confidence is low.

However, both PropTrack and SQM Research have recently reported an uptick in new listings.

PropTrack found there were 10.5% more new listings on realestate.com.au in March than February.


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.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.04% p.a.
6.06% p.a.
$2,408
Principal & Interest
Variable
$0
$530
90%
Featured 4.6 Star Customer Ratings
  • No monthly or ongoing fees
  • Unlimited free redraw
  • No application fee
5.99% p.a.
5.90% p.a.
$2,396
Principal & Interest
Variable
$0
$0
80%
Featured Apply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
6.14% p.a.
6.16% p.a.
$2,434
Principal & Interest
Variable
$0
$250
60%
Featured Unlimited Redraws
  • No annual fees - None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
  • Redraw freely - Access your additional payments when you need them
  • Home loan specialists available today
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

Picture by R Architecture on Unsplash





Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

By subscribing you agree to our privacy policy