Majority of housing markets recorded price increases: CoreLogic

According to analysis by CoreLogic using its Mapping the Market tool, 88.4 per cent of house and unit markets analysed nationally recorded price increases over the last 12 months.

This marked an increase from 52.9 per cent in July 2023 and up from the 39.1 per cent that recorded positive annual growth in February 2023.

CoreLogic economist Kaytlin Ezzy noted that the broad-based capital gains seen over the last year reflected an “ongoing imbalance between housing supply and demand, which has helped to counteract the less favourable market and affordability conditions”.

“Despite three rate hikes, worsening affordability, and the rising cost of living, the increasingly entrenched undersupply in housing stock, and above average demand thanks to strong net migration, has helped push values higher,” Ezzy said.

According to the analysis, Brisbane, Adelaide, and Perth have recorded the most widespread value increases year on year across both house and unit markets.

All of Brisbane’s 312 house and 167 unit markets saw values increase, while the inner-city suburb of East Perth was the only western capital market to record a drop (0.8 per cent) in house values.

Meanwhile, Adelaide’s Black Forest house market and the Glenelg South unit market recorded declines over the year to February of 0.4 per cent and 1.8 per cent, respectively.

“Positive net migration flows, low housing supply and comparatively low housing prices have all helped support widespread growth across these markets,” Ezzy stated.

The majority of Perth’s markets (93.7 per cent) recorded a capital gain of 10 per cent or more, with the coastal suburb of Waikiki recording a 42.1 per cent annual rise.

CoreLogic further found that Brisbane saw 86.4 per cent of its house and unit suburbs record double-digit growth.

“... [T]he fastest rising markets clustered around the Brisbane – South and Logan – Beaudesert regions, while three-quarters of Adelaide markets recorded double-digit annual growth,” Ezzy added.

Housing affordability continues to take the limelight

While it’s evident that Australia’s housing market has been experiencing a substantial upswing over the last 12 months, the affordability of these dwellings has been brought into question.

Recently, the Australian Greens party revealed the annual income needed to buy a house and avoid housing stress sat at 1.6 times above the average Australian income.

An analysis by the Parliamentary Library using data from CoreLogic and the Australian Bureau of Statistics (ABS) found that the required income is $164,400 for a house, while the annual income for an apartment was $130,599.

For the eight capitals combined, the income needed for a house and a unit stood at $186,940 and $133,837, respectively.

[RELATED: ‘The system is broken’, MP on housing affordability]