Median house prices hit record high with 7.6 per cent raise in 12 months
After a steady rise, the median house price in Australia has officially soared to new heights, according to the Real Estate Institute of Australia’s (REIA) Real Estate Market Facts (REMF) report. The REIA announced that the national median house price has surged to $1.026 million, marking a notable increase of 7.6 per cent from April 2023 to March 2024. This upward trend is evident in most Australian capital cities, including Sydney, Melbourne, Brisbane, Adelaide, Perth and Darwin.
Elite Agent elaborated on the report, highlighting that Perth has experienced the highest rise among capital cities, with property prices increasing by 3.8 per cent. This was followed by Adelaide at 2.7 per cent, Sydney at 2.1 per cent, Melbourne at 2 per cent, Brisbane at 1 per cent, and Darwin at 0.3 per cent. Interestingly, Hobart experienced a 3.4 per cent decline in median house prices, followed by a 3.1 per cent drop in Canberra.
According to Leanne Pilkington, REIA President, “At $1,627, 625 the median price for a house in Sydney continues to be higher than that of other capital cities, 58.5 per cent higher than the national median. At $561,500, Darwin has the lowest median price for houses, 45.3 per cent lower than the national median.”
Property prices are also expected to rise further into the new financial year, with Sydney, Perth, Brisbane and Melbourne anticipated to set new records. Sydney median prices are forecasted to range from $1.73 to $1.76 million, while Perth’s projected median is $840,000 to $856,000 after experiencing an 8 to 10 per cent growth, the largest across the nation.
Western Australia on the rise: the nation’s fastest growing city
In addition to Perth’s escalating house prices, Western Australia’s popularity is further highlighted by having three of the top ten fastest growing Australian cities, according to Propertyology. Mandurah, located one hour south of Perth, has been recognised as Australia’s fastest growing city and the 24th largest, with its population growing by 91 per cent to 99,272 over the last 20 years.
Mandurah’s appeal is evident, with Propertyology comparing it to Noosa, Queensland and the Central Coast in New South Wales. However, property prices are a fraction of cost of those popular coastal hotspots, boasting a median house price of $580,000. The coastal town features white sand beaches, the Serpentine River, wildlife, bustling cafes and restaurants, and sporting amenities and parklands. The biggest contributors to Mandurah’s growing population were people moving from Perth and the UK.
Additionally, Busselton, located two hours south of Perth, ranked fourth on the list, followed by Harvey in the states south-west in seventh place. See the full list of the 30 fastest growing Australian cities here.
Interest rates have minimal impact on over 30 per cent of property sales
InfoTrack has recently undertaken Australia’s largest property research survey to gain a comprehensive understanding of the buying and selling experience in Australia. In preliminary findings from the 2024 State of Real Estate Report: Insights from Australian Buyers and Sellers, 38 percent of respondents have said interest rates did not influence their decision to buy or sell property.
Survey respondent Tom McGuigan, 27, said he chose to buy a two-bedroom unit in the inner Brisbane suburb of Lutwyche, to get a foothold in the market.
“The consensus I heard about property is, get in when you can. I had the deposit, so I made my move. Rapidly rising rents further incentivised me to buy and pay off a loan rather than pay off someone else’s mortgage at an overly inflated price,” Mr McGuigan said.
“There was a lot of stress among my peers with rising interest rates late last year, but I factored rate rises into my purchase and gave myself a financial buffer,” he said.
InfoTrack’s Head of Property Lee Bailie said while interest rates may not stop buyers from purchasing, they can influence the type of property purchased. “Getting on or moving up the property ladder is a priority for many buyers, but interest rates, property prices, and the rising cost of living means some buyers must compromise on the size, type, and location of property they buy,” Mr Bailie said.
While interest rates may not have had a significant influence over a substantial number of individuals, most participants were impacted. Full results of InfoTrack’s 2024 State of Real Estate Report: Insights from Australian Buyers and Sellers will be released in Q3 2024.
