House values rose in March quarter

According to new figures released by the Australian Bureau of Statistics, national housing prices grew by 1.6 per cent in the eight capital cities in the March quarter, highlighting the strength of the property market prior to the introduction of COVID-19 social distancing measures.

All capital cities recorded an uplift in residential property values in the three months to the end of March, with Australia’s busiest markets, Sydney and Melbourne, seeing growth of 1.9 per cent and 2.1 per cent, respectively.

Meanwhile, homes in Hobart experienced a 2.4 per cent increase in value over the quarter, while Darwin’s housing values saw growth of 0.7 per cent.

The market in Perth grew by 0.6 per cent in the three months to the end of March, while Adelaide values lifted by 0.4 per cent. 

Canberra values grew by 0.2 per cent over the quarter.

More specifically, house prices grew by 2.6 per cent in Sydney and 2.3 per cent in Melbourne over the March quarter, while attached dwellings rose by 0.8 per cent in Sydney and 1.5 per cent in Melbourne.

When compared with results from the March quarter in 2019, housing values across the combined capital cities have risen by 7.4 per cent, with increases recorded in all capital cities apart from Perth and Darwin.

The total value of Australia’s 10.5 million residential dwellings rose by $141.6 billion to $7,237.1 billion in the March quarter 2020, while the mean price of residential dwellings in Australia is now $690,200.

The ABS noted that COVID-19 social distancing requirements were not strictly enforced until late March, meaning that the March quarter results reported no “noticeable impact” of the pandemic; however, the impact is likely to be more evident in future statistical releases.

Commenting on the results, ABS chief economist Bruce Hockman said, “Estimates are in line with expectations. The majority of restrictions relating to COVID-19 came into effect in late March and therefore did not have a noticeable impact on property prices in the March quarter 2020.”

[Related: New home sales fall 20%]