House prices hit highest quarterly rise

Research from the Real Estate Institute of Australia has shown that the weighted average capital city median price for both houses increased by 6.8 per cent over the March quarter, while other dwellings rose by 2.7 per cent.

The weighted average median house price for the eight capital cities rose to $873,911, with all cities increasing except for Canberra.

For the year to March, there had been an 11.1 per cent annual rise.

At $1.3 million, Sydney’s median house price continued its lead ahead of the other cities, 49.8 per cent above the national average.

Perth had the lowest median house price, at $500,000, 42.8 per cent lower than the national average.

For dwellings other than a house, the weighted average median price increased to $621,313, rising by 2.7 per cent over the quarter. It had increased across Sydney, Melbourne, Perth, Hobart and Darwin, but remained steady in Brisbane and Canberra and fell in Adelaide.

For the year to March, the price for other dwellings increased by 3 per cent.

The national capital city vacancy rate came to 3.3 per cent, going up primarily due to Melbourne’s rate of 6.1 per cent.

A recent report from Australian Property Institute and market research firm The Search People also found that 63 per cent of property professionals expect values across Sydney, Melbourne, Brisbane, Adelaide and Perth to continue rising over the next six months, despite affordability and sustainability concerns.

Over half (55 per cent) of the survey participants said they believed buyers are overcapitalising when it comes to purchasing property and 57 per cent said Australian property is now unaffordable.

Rafe Berding, chief executive of The Search People, commented that while most respondents believed a continued boom is set for the sector, 59 per cent also said they believed Australia was seeing the makings of a property bubble.

“A combination of record-low interest rates and buyers’ uncertainty of investing in other alternatives is fuelling high demand. This, coupled with low supply, is driving a fear of missing out for many buyers,” Mr Berding said.

“As a result, properties are being snapped up significantly above the asking price within moments of being listed.”

Around half (47 per cent) of property professionals also supported the idea of buyers accessing superannuation to buy property.

[Related: Melbourne lockdown dents auction volumes]

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