How big was the property boom? Australian house prices soar to record heights
The Australian Bureau of Statistics (ABS) has officially confirmed what we all guessed in 2021: housing prices went kaboom.
According to their newly released data, Australian residential property prices in the capital cities ballooned by 23.7% throughout the year – the strongest annual growth on record.
However, the headliners were not the classic Sydney-Melbourne duo we’d expect. Instead, the speedster capitals were:
- Hobart (+30%)
- Canberra (+29%)
- Brisbane (+28%)
- Sydney (+27%)
- Adelaide (+24%).
Each of the above experienced their largest annual rise since the ABS began tracking house prices in 2003.
Meanwhile, Melbourne (+20%) trailed behind the pack despite experiencing its highest June quarter surge since 2010. Perth and Darwin brought up the rearguard, with only 16% and 13% rises, respectively.
ABS head of prices statistics Michelle Marquardt remarked that these results were consistent with a host of market indicators, including seductively low fixed-rate home loans.
“Record low interest rates and strong demand have continued to support growth in property prices,” she observed.
This growth pushed the total value of Australia’s 10.8 million residential homes to over $9.9 trillion in December 2021 (a $2 trillion increase from December 2020).
As a result, the mean price of Australian residential dwellings is now $920,000, with NSW registering as the priciest state with an average $1.2 million per property.
Australian housing affordability pushed to crisis point, but there is hope on the horizon for home-buyers
This latest announcement seems pretty grim, with the Real Estate Institute of Australia (REIA) estimating that borrowers spent an average of 37% of their incomes on mortgage repayments in December 2021.
But while there are many justified calls for federal solutions to the affordability crisis, relief glints on the horizon for first time home buyers.
Many experts predict that prices will peak at some point this year, with some estimating a drop of -10% in 2023. We may already be seeing the impending wobbles, since property prices in Sydney saw their first drop since 2020 just this month.
Furthermore, fixed-rate home loans – whose affordability partially fueled the property boom – are poised to rise again later this year, which will likely cool the red-hot market.
Though it can be hard to gauge where the housing market will take us specifically, home loan comparison and analysis of 2022’s property trends will be key to breaking in.
Looking for an edge in the property market? Off-market buying could be for you.
Alternatively, you can browse and compare affordable home loan options below.
Compare and save on home loans - last updated 19 March 2024
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Featured Product
Ultra Low Rate <95% LVR
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment6.30% p.a. variable6.58% p.a.Only 5% deposit required to apply. Low upfront costs to pay. No LMI Required. Unlimited Redraw and additional repayments. No Application or ongoing fees. No guarantors or equity sharing required.
CompareCompareUltra Low Rate <95% LVR
Only 5% deposit required to apply. Low upfront costs to pay. No LMI Required. Unlimited Redraw and additional repayments. No Application or ongoing fees. No guarantors or equity sharing required.
- interest rate
- 6.30% p.a. variable
- comparison rate
- 6.58% p.a.
- interest rate
- 6.30% p.a. variable
- comparison rate
- 6.58% p.a.
- Upfront fees
- $790
- Ongoing fees
- $0.00
- Discharge Fee
- $795.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 95.00%
- minimum borrowing amount
- $350,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
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Read our Mozo Review to learn more about the Sucasa Ultra Low Rate <95% LVR
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Featured Product
Mozo experts choice awards won:
- Low Cost Home Loan - 2024
Unloan Variable
Owner Occupier, Refinance Only, LVR <80%
interest rate
comparison rate
Initial monthly repayment5.99% p.a. variable5.90% p.a.For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
CompareCompareUnloan Variable
For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
- interest rate
- 5.99% p.a. variable
- comparison rate
- 5.90% p.a.
- interest rate
- 5.99% p.a. variable
- comparison rate
- 5.90% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $10,000
- maximum borrowing amount
- $10,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
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Read our Mozo Review to learn more about the Unloan Unloan Variable
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Straight Up
Obliterate, Owner Occupier, Principal & Interest, <50% LVR
interest rate
comparison rate
Initial monthly repayment6.24% p.a. variable6.24% p.a.Get a low variable rate depending on your deposit with Athena’s Straight Up Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.
CompareCompareStraight Up
Get a low variable rate depending on your deposit with Athena’s Straight Up Variable Home Loan. AcceleRATES feature helps you to reduce your home loan even faster (T&Cs apply). Zero fees to pay. Free redraw facility. Handy mobile app to manage your home loan.
- interest rate
- 6.24% p.a. variable
- comparison rate
- 6.24% p.a.
- interest rate
- 6.24% p.a. variable
- comparison rate
- 6.24% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 50.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,500,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Athena Straight Up
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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