House price rises continue
COVID-19 lockdowns have had practically no impact on property values.
New figures suggest Australia’s median property price lifted by 1.5 per cent last month (to $666,514), with houses and apartments in nearly every capital city even pricier.
Hobart is up 2.3 per cent, Canberra 2.2 per cent, and a rise in Brisbane of 2 per cent.
Prices in the other capitals went up by just under 2 per cent, with Darwin the only outlier, seeing prices drop 0.1 per cent last month.
Australia's median property price is rising by about $1,990 per week.
Housing values are rising at a slower pace in recent months, but that “probably has more to do with worsening affordability constraints than ongoing lockdowns”, according to CoreLogic research director Tim Lawless.
Property prices have continued to rise despite a sharp fall of 5.8 per cent in the number of properties advertised for sale compared to the five-year average.
Australian wages are growing at just 1.7 per cent per year, worsening current affordability issues.
“Housing prices have risen almost 11 times faster than wages growth over the past year, creating a more significant barrier to entry for those who don't yet own a home,” Mr Lawless said.
“Lockdowns are having a clear impact on consumer sentiment, however to date the restrictions have resulted in falling advertised listings and, to a lesser extent, fewer home sales, with less impact on price growth momentum.
“It's likely the ongoing shortage of properties available for purchase is central to the upwards pressure on housing values.”
Australian property values have increased by 15.8 per cent since the start of 2021, and are 18.4 per cent higher than they were this time last year.
Australia is experiencing the fastest annual rate of growth in 32 years.
“Through the late 1980s, the annual pace of national home value appreciation was as high as 31 per cent, so the market isn't quite in unprecedented territory," Mr Lawless said.
“The annual growth rate at the moment is trending higher — in fact, it is 3.6 times higher than the 30-year average rate of annual growth.”