Homes just got more expensive to buy in all capital cities – except one

Aerial view of established Adelaide north-eastern suburb with 6-way landscaped roundabout

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.

A view over the colourful rooftops of Hobart, looking out towards the bay.

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.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 472 home loans.
Last updated 14 June 2024 Important disclosures and comparison rate warning*
  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • Discount Variable Home Loan

    • Owner Occupier
    • LVR<70%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.01 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

  • Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.06 % p.a.
    Initial monthly repayment
    $3,011
    Go to site

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

  • Fixed Rate Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Initial monthly repayment
    $3,027

    Additional repayments of up to $10K per fixed year. Interest rate discounts available. Waiver of $499 application fee when combined with an Orange Advantage Home Loan.

  • The Better Home Loan Special Offer

    • Owner Occupier
    • Principal & Interest
    • LVR<80%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Mortgage Simplifier

    • LVR<80%
    • Owner Occupier
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.17 % p.a.
    Initial monthly repayment
    $3,043

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.59 % p.a.
    Fixed 3 years
    Comparison rate
    7.06 % p.a.
    Initial monthly repayment
    $3,190

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

image of houses

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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.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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