According to the March quarter Domain State of the Market report, most capital city’s housing markets have commenced the year with “buoyant growth” as low interest rates and strong confidence levels continue to drive the market.
As such, the national median house price increased by 2.2 per cent over the March quarter to reach a new record high of $801,204, a 10.2 per cent annual increase.
Although growth levels in capital city housing markets have varied according to local supply and demand, Domain chief economist Andrew Wilson emphasised that overall, the Australian property market has “largely gotten off to a strong start” in 2017.
“Steadying interest rates could moderate house price growth over the coming year. Still… with healthy yields and low deposit rates, investor activity looks likely to continue throughout the year,” he said.
The median house price for Sydney increased by 2.8 per cent over the March quarter, to a new record high of $1,151,565. However, despite the new record, the rate of growth in Sydney halved this quarter compared to the previous.
In Melbourne, the median house price increased by 4.0 per cent over the March quarter to a new record of $843,674. Melbourne house prices increased by 15.2 per cent over the year to date — the highest growth rate of all the capitals, which has been on the rise for a record 18 consecutive quarters.
Brisbane’s median house price declined over the March quarter, falling 1.4 per cent to $532,504. While the city’s house prices increased over the year, the 3.4 per cent increase is the market’s slowest rate of annual growth since June 2013.
Adelaide’s median house price saw an increase of 1.8 per cent over the quarter, to a new record high of $514,853. Over the year, Adelaide median house prices increased by 4.9 per cent.
Meanwhile, Perth house prices have fallen 1.8 per cent over the March quarter to a median of $561,165.
The Canberra median house price has continued to rise over the March quarter, exceeding $700,000 for the first time at $705,059.
Hobart’s median house price has continued on its growth trajectory, with a 4.8 per cent increase over the March quarter to $389,625. Overall, the capital’s median house price has increased by 11.9 per cent over the past year.
Finally, although the Darwin median house price has fallen 3.3 per cent over the past year, house prices in the capital increased by 2.9 per cent over the March quarter, reaching $589,914.
[Related: Capital cities finish 2016 ‘on front foot’]