New data released by the Australian Bureau of Statistics (ABS) has suggested that the last 12 months have seen capital city property values soar to new heights, with the statutory agency reporting its largest-ever recorded annual growth.
According to these latest figures, the weighted average of Australia’s eight capital cities grew 23.7 per cent over the last 12 months – the strongest annual growth since the ABS began recording in 2003.
While every capital city reported distinctive increases over 2021, the most apparent year-on-year rises were observed in the smaller cities with Hobart (29.8 per cent), Canberra (28.8 per cent), Brisbane (27.8 per cent) and Adelaide (23.9 per cent) all outperforming both Sydney (26.7 per cent) and Melbourne (20 per cent).
Following this annual growth, the ABS has stated that the mean price of a residential dwelling in Australia is now valued at $920,100.
NSW has been reported as the state with the highest average value, reporting a sum shy of $1.21 million.
Following Australia’s most populous state were the ACT ($979,600) and Victoria ($956,100).
The lowest reported price was found in the Northern Territory, coming in at $489,000.
The results mirror similar findings regarding Australia’s perpetually increasing housing market, with data released by Knight Frank earlier this week stating that the country’s annual property price growth is now ranked the highest in the world.
Research published by Domain in late January also suggested that the median price for a house in an Australian capital city was then worth over $1 million with a year-on-year growth of more than 25 per cent.
The subsequent impact of this rise is suggested by additional research to be a prevalence of mortgage stress.
Real Estate Institute of Australia (REIA)’s latest Housing Affordability Report, for example, suggested that, in December, borrowers had spent an average of 37 per cent of their incomes to meet loan repayments.
But while industry bodies echo one another in calls for further action from the federal government to quell Australia’s affordability crisis, there are also calls that house prices will peak at some point this year.
CBA, for example, has predicted that house prices will begin to flatline towards the second half of the year.
Further, CoreLogic reported there was a 0.3 per cent incline in property prices across the eight capital cities over the month of February, the lowest monthly reading since October 2020.