Homes just got more expensive to buy in all capital cities – except one
CoreLogic's September Home Value Index (HVI) recorded a 2.2% growth in national home prices over the quarter, but zooming in to focus on the nation’s capitals reveals one city is resisting the trend.
Growth in the country’s housing market has eased since the June quarter’s 3% gain, which CoreLogic research director Tim Lawless says is tied to housing supply.
“The three capitals recording the highest capital gain each have advertised supply levels that are around 40% below their previous five-year average.”
Which cities have gotten more expensive to buy a home?
The top three cities in terms of home value growth over the quarter were Adelaide, Brisbane, and Perth. These three far outpaced other cities’ growth, with the next-highest, Sydney, lagging behind considerably.
Let's take a look at how home values across each capital city has changed.
Adelaide
Quarterly change: +4.3%
Annual change: +5%
Median value: $691,600
Over the quarter, home prices in Adelaide increased by 4.3% – the highest capital gain.
However, a year-on-year (YOY) analysis shows housing in Adelaide increasing by 5% over 12 months to 30 September 2023.
The median home price in Adelaide is about $691,600, according to CoreLogic.
Brisbane
Quarterly change: +3.9%
Annual change: +5%
Median value: $761,740
In Brisbane, home prices grew 3.9% over the quarter. Annually, the Queensland capital shared similar YOY growth to Adelaide, at 5%.
The median price for a home in Brisbane is about $761,740.
Perth
Quarterly change: +3.6%
Annual change: +8.8%
Median value: $618,360
Perth recorded a quarterly gain of 3.6%, not far behind Brisbane. However, the western-most capital posted YOY growth of 8.8%, according to CoreLogic.
The median home value in Perth sits around $618,360.
Sydney
Quarterly change: +2.5%
Annual change: +7.3%
Median value: $1,110,660
For a city with the highest median home price in the country, Sydney recorded a modest 2.5% quarterly increase in September.
However, the city’s annual home price growth rate is the second-highest, at 7.3%, according to the report.
The median home price in Sydney is an eye-watering $1,110,660 – about $333,940 more than its traditional property market rival, Melbourne.
Melbourne
Quarterly change: +1.3%
Annual change: +1.5%
Median value: $776,720
Melbourne’s quarterly home values increased by 1.3%, as of 30 September 2023.
The city’s YOY home value growth was relatively low compared to other cities, at 1.5%.
The median home price in Melbourne is $776,720, according to CoreLogic.
Darwin
Quarterly change: +1.3%
Annual change: -2.2%
Median value: $493,360
In Darwin, home values grew 1.3% in the September quarter, keeping pace with Melbourne. Darwin’s home prices actually dropped YOY by -2.2%.
The median home value in Darwin is $493,360, according to CoreLogic’s data.
Canberra
Quarterly change: +0.4%
Annual change: -3%
Median value: $836,327
In the nation’s capital, Canberra, home values edged slightly in the direction of growth, recording a 0.4% quarterly gain. However, like in Darwin, home values actually dropped YOY by -3%.
The median home value in Canberra is $836,327, the second most expensive capital city in Australia, despite home prices dropping over the 12 months to September 2023.
Hobart only city to record quarterly and annual home value drops
Like a child drawing a map of Australia, Tasmania somehow always seems to get left out.
However, for prospective buyers, the monthly, quarterly, and annual drops in home values in the city present an opportunity to buy for what could be far lower prices than the last 12 months.
Hobart
Quarterly change: -0.2%
Annual change: -7%
Median value: $658,990
In Hobart, home values dropped slightly by -0.2%.
The annual change, however, saw home values slip by a whopping -7%, according to CoreLogic’s report.
While home values appear to be on the decline in Hobart, the median price is still higher than in Perth by around $40,630, at $658,990.
Regional property markets an opportunity to buy?
According to CoreLogic, regional areas recorded lower growth in dwelling values, at a quarterly gain of 1.1% and an annual gain of just 0.4% YOY.
The median value for a home across Australia’s regions was recorded at about $591,630.
For those looking to buy a home soon, whether as an owner-occupier or with an investment property loan, regional areas may be a viable option.
However, those looking to purchase within a specific capital city, whether it be to stay close to work, friends, or family, may not have much of a choice but to weather the storm of Australia’s property price recovery.
Of course, having a home loan with an affordable interest rate can make buying a house a little easier on the wallet.
So, if you’re starting your search for a property, make your first port of call a home loan comparison, so that you’re aware of the latest rates on offer and if there are any home loan features you might find helpful.
Start by checking out some of the feature home loans below.