Australian house prices hit RECORD highs with homes pricier than ever before – but it’s a different story in two major cities
- House prices in Australia continue to surge, especially in Sydney and Melbourne
- Darwin and Perth were the only capital cities not to achieve record numbers
- As Covid restrictions ease, experts have forecast increased spending in 2021
House prices in Australia have achieved record highs, with properties more expensive than ever across most parts of the nation.
New data from Domain revealed that in December 2020, house prices across all capital cities hit record numbers – except in Darwin and Perth.
Sydney typically led the way, with the median house price sitting at a little over $1.2million, up 6.7 per cent from this time last year.
‘Record low interest rates have spurred buyer activity with cheaper credit easing the affordability of mortgage repayments,’ Domain Senior Research Analyst, Dr Nicola Powell, said.
Melbourne properties were also on the rise, with the median price on the market being just over $936,000, up from almost $889,000 in the previous quarter.
Multi-bedroom houses in Brisbane (pictured above) flood the market, but provide value for money compared to other capital cities
Units in Sydney’s CBD (pictured above) are comfortably selling for over $1million a piece – as buyers take advantage of low interest rates
Dr Powell linked this to ‘first-home buyers utilising incentives, low mortgage rates and a deeper savings pot as Covid restrictions reduced discretionary spending across Melbourne.’
Brisbane, which has long offered value for home owners and investors, saw properties under the hammer for over $616,387, up from $611,606.
This was due to ‘lower mortgage rates and improved borrowing capacity have fueling buyer demand,’ according to Powell.
Adelaide ($574,264) and Canberra ($855,530) also experienced growth, as did Hobart ($564,091).
Perth ($563,214) and Darwin ($533,845) were stable, but failed to chalk up record highs, but numbers still remained encouraging.
‘Perth remains the second-most affordable capital city to purchase a house or unit,’ Powell said.
‘In Darwin, the successful containment of Covid-19 has increased buyer demand, and once the vaccine is rolled out across Australia, more people will potentially look to the Top End for employment opportunities, which will result in the housing market improving.’
When it comes to unit prices, Sydney was again the most expensive ($729,840) ahead of Melbourne ($569,677) and Canberra ($485,410).
Brisbane ($395,218), Adelaide ($350,122) and Darwin ($285,539) were the capital cities offering value for owners and investors, while Melbourne ($569,677) and Canberra ($485,410) enjoyed significant growth across 2020.
Units in Darwin (pictured above) provide an ideal opportunity for investors or first time buyers
Prices in Perth (pictured above) don’t currently reflect the record high across Australia for properties in some major cities