Property prices rising at fastest pace since June 1989, says CoreLogic

Child running to their dad across the lawn as mum watched from the house's patio

Australian property prices are experiencing the fastest annual rate of growth since June 1989, but gains have slowed in recent months and there are signs the market will continue to lose steam.

According to property research firm CoreLogic, national dwelling values rose by 1.5% in September, having eased considerably since hitting 2.8% in March. 

Overall, Australian residential property prices are up 17.6% over the first nine months of the year and 20.3% over the past 12 months.

CoreLogic’s research director, Tim Lawless, attributed the slowing growth conditions to the increasing barriers to entry homebuyers now confront. Home values are rising at a faster pace than incomes, making saving up for an initial deposit much more challenging. 

“Sydney is a prime example where the median house value is now just over $1.3 million. In order to raise a 20% deposit, the typical Sydney house buyer would need around $262,300,” he said.

Australian home values changes - CoreLogic Home Value Index ( 30 September 2021)

MonthlyAnnualMedian value
Combined regional1.7%23.1%$503,609

Though recent lockdowns may have dampened consumer sentiment, prices have largely been unaffected by the restrictions. As the price of dwellings increases, many first home buyers will find themselves unable to enter the market. 

“The slowdown in first home buyers can be seen in the lending data, where the number of owner occupier first home buyer loans has fallen by -20.5% between January and July,” said Lawless.

“Over the same period, the number of first home buyers taking out an investment housing loan has increased, albeit from a low base, by 45%, suggesting more first home buyers are choosing to ‘rent vest’ as a way of getting their foot in the door.”

Concerns that borrowers are overextending themselves have given way to calls for regulators to clamp down on soaring household debt levels. Recently, CBA chief executive Matt Comyn called on banks to proactively tighten their lending standards.

Runaway debt was also a topic of discussion in the latest meeting of the Council of Financial Regulators. In a statement released on Wednesday, the CFR revealed that APRA intends to release a framework for introducing macroprudential controls in the coming months.

It is still unknown what shifts in regulatory policies will come out of these concerns, but if you’re looking to buy your first home check out Mozo’s first time buyer hub to get information on the home buying journey.

Home loan comparisons on Mozo - last updated 20 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Variable Home Loan 70

    interest rate
    comparison rate
    Initial monthly repayment
    3.10% p.a. variable
    3.12% p.a.

    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 30% deposit required.

  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% 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.

  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.

  • Smart Booster Home Loan

    2 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    3.60% p.a.variable for 24 months and then 4.00% p.a. variable
    3.96% p.a.

    Already includes July RBA rate increase. New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.


* 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, loan amount and term entered. 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.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.