New figures released by Domain have supplemented claims that Australia’s surging property market will plateau over 2022, with the data suggesting that house price growth in capital cities fell by over 90 per cent during the March quarter.
According to Domain’s March quarterly House Price Report, capital city house values grew by 60 bps during the three-month period to just under $1.07 million – a distinctive fall from the 6.9 per cent reported over the December 2021 quarter.
This fall was seen at its highest in Darwin, Canberra and Melbourne, which experienced a loss of 180 bps, 90 bps and 70 bps respectively.
During the December 2021 quarter, the ACT and Melbourne capitals reported growth of 11.3 per cent and 5.8 per cent, while Darwin experienced neither growth nor loss during the period.
Brisbane (3.1 per cent), Adelaide (3 per cent) and Hobart (4.3 per cent) were the only three capital cities that saw higher growth than the median figure.
However, it wasn’t enough to buck the capital trend, with these rates being well below the 10.7 per cent, 8.6 per cent and 8.7 per cent reported over the previous quarter.
Yet despite the drop, year-on-year growth has still escalated significantly, hitting a median figure of 18.4 per cent – the highest growth again being seen in Brisbane (32.1 per cent), Adelaide (28.1 per cent) and Hobart (25.5 per cent).
Further, Domain has said that the current median price of $1.07 million is a new record high, with Perth seeing its highest house price since 2014 ($622,030).
Comparatively, regional houses reportedly increased by 3.1 per cent over the quarter, and by 20.8 per cent annually.
Domain chief revenue officer John Foong commented on the findings, saying that the report “shows that house price growth is cooling down across the capitals”.
“While the balance between supply and demand is slowly changing and creating great options for buyers, it’s also prompting a change in seller price expectations, with figures such as auction clearance rates experiencing a drop in some cities,” Mr Foong said.
“As we see this latest change play out in our property market, knowing, and adapting to, the shifts in your local area will be key to continuing to drive strong results for your customers.”
Units across capital cities also reported a downward pivot in value growth, falling from the previous quarter’s increase of 1.9 per cent to a loss of 1 per cent – the first decline since June 2020 – hitting a median value of almost $617,000.
Brisbane (3.1 per cent), Adelaide (1.3 per cent) and Canberra (0.6 per cent) were the only cities to experience a growth in value over the March quarter.
However, unit values are still higher than during the March 2021 quarter, with growth being reported at 4.5 per cent year-on-year.
This was observed at its greatest in Hobart and Darwin, which both surged by 29.8 per cent over the 12-month period.
Speaking of the report, Domain chief of research Dr Nicola Powell said: “These latest quarterly statistics could ease some of the pressure particularly for first home buyers, with annual growth being at a 12-month low.
“While each city’s figures vary, we’re seeing Australia settle into a ‘new normal’, including increased interstate movements, ease of restrictions and return of international workers, which is prompting shifts in the property market.”