House price growth hits 20-year high

By Jon Bragg

March 18 2022
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The median capital city house price rose to over $1.02 million during the last quarter.

House prices in the eight capital city markets soared by 25.1 per cent in 2021 according to the Real Estate Institute of Australia (REIA), the fastest pace of growth in two decades.

The weighted average median house price across the capitals climbed to $1,022,616 with quarterly rises in every city except for Darwin according to REIA president Hayden Groves.

“At $1,601,467, Sydney’s quarterly median house price continues to be the highest amongst the capital cities, 56.7 per cent higher than the national average,” he said.

The REIA said that the December quarter marked the first time since June 2002 that the annual rate of growth had exceeded 20 per cent, however not all cities recorded equally strong growth during the past 12 months.

“At $525,000, my home town of Perth remains the most affordable with the lowest median house price across Australian capital cities, 48.6 per cent lower than the national average,” said Mr Groves.

“With Western Australia finally opening the borders it will be interesting to watch how this impacts on property prices.”

For other dwellings including villas and flats, median price growth lagged with a rise of 1.8 per cent in the December quarter.

Mr Groves said that the median dwelling price had increased on a quarterly basis in Sydney, Melbourne, Brisbane, Perth and Hobart but decreased in Adelaide, Canberra and Darwin.

“At $802,255, Sydney’s median price for other dwellings continues to be the highest amongst the capital cities, 21.8 per cent higher than the national average,” he said.

Meanwhile, Adelaide recorded the lowest median price for other dwellings across the capitals at $412,500, 38.2 per cent below the average nationally.

Investor and regional activity remained strong during the quarter according to Mr Groves, who suggested that property was seen as a “go to” investment amid global uncertainty.

“Household investor finance increased by 13.4 per cent in the December quarter with investors continuing to enter the market confidently in this phase of the COVID-19 pandemic,” he said.

Outside the capitals, the REIA highlighted the strong annual performance of key regional centres including Launceston (49.3 per cent), the Sunshine Coast (32.9 per cent), Wollongong (30.4 per cent) and Mt Gambier (14.9 per cent).

Earlier this week, the RBA said that house prices in the capital cities had jumped 27.5 per cent in 2021 while prices for attached dwellings increased by 14 per cent.

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