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Key takeaways
Australian home values continued to trend higher in May with national Home Value Index (HVI) rising 0.8%.
The mid-sized capitals continued to lead the pace of growth, with Perth home values up 2.0% in May, Adelaide rising 1.8% and Brisbane up 1.4%.
The remaining capital cities recorded milder conditions, ranging from a 0.6% lift in Sydney values to a monthly decline of -0.5% in Hobart and a -0.3% fall in Darwin.
Brisbane is now the second-most expensive capital city after overtaking Canberra’s median dwelling value in May, a position Brisbane hasn’t recorded since 1997.
The median house price in Australia’s combined capital cities is now $975,592.
The median unit price in Australia’s capital cities is $669,434.
The median dwelling value in Australia’s combined regional areas is $626,888
But of course, there are markets within markets, so we detail the median prices for each capital city in this article.
Australian home values continued to trend higher in May with CoreLogic’s national Home Value Index (HVI) rising 0.8%.
Beneath the headline numbers, we are seeing multi-speed conditions with the mid-sized capitals continuing to lead the pace of growth.
The mid-sized capitals continued to lead the pace of growth, with Perth home values up 2.0% in May, Adelaide rising 1.8% and Brisbane up 1.4%.
The remaining capital cities recorded milder conditions, ranging from a 0.6% lift in Sydney values to a monthly decline of -0.5% in Hobart and a -0.3% fall in Darwin.
Brisbane is now the second-most expensive capital city after overtaking Canberra’s median dwelling value in May, a position Brisbane hasn’t recorded since 1997.
And of course, our capital cities are performing differently to the regional housing markets.
Change in dwelling values around Australia
Source: CoreLogic 1st June 2024
- The median dwelling price for Australia now sits at $785,556
- The median dwelling price for our combined capital cities now sits at $864,780
- The median dwelling price for our combined regional towns sits at $626,888
Current Australian house price trends
Of course, there is not one property market around Australia as the following chart clearly shows.
The ongoing rise in housing values reflects a persistent imbalance between supply and demand which varies in magnitude across our cities and regions.
Perth continues to stand out with a substantially higher rate of growth compared to any other region, up 2.0% over the month.
Adelaide (+1.8%), Brisbane (+1.4%) and the regional areas of SA (+1.4%), WA (+1.8%) and Queensland (+1.1%) also show a consistently high rate of capital growth month-to-month.
These regions are generally benefiting from a combination of comparatively lower housing prices and positive demographic factors that continue to support housing demand.
Although the pace of gains has slowed a little, most regions are still recording value growth well below the highs of last year when the national index rose 1.3% in May 2023.
| Onset of Feb 2024 | Δ COVID to 2024 | Δ from peak to Feb 2024 | Peak date | |
|---|---|---|---|---|
| Sydney | 27.2% | $247,174 | -0.00% | 22-Jan |
| Melbourne | 11.2% | $78,555 | -4.0% | 22-Mar |
| Brisbane | 59.8% | $315,553 | <at peak> | 24-May |
| Adelaide | 61.0% | $286,865 | <at peak> | 24-May |
| Perth | 62.6% | $283,687 | <at peak> | 24-May |
| Hobart | 28.4% | $144,723 | -11.5% | 22-Mar |
| Darwin | 26.2% | $104,242 | -5.3% | 14-May |
| Canberra | 31.8% | $202,542 | -5.8% | 22-May |
| Regional NSW | 48.3% | $238,931 | -3.4% | 22-May |
| Regional VIC | 33.4% | $142,963 | -6.6% | 22-May |
| Regional QLD | 60.5% | $240,310 | <at peak> | 24-May |
| Regional SA | 60.4% | $157,832 | <at peak> | 24-May |
| Regional WA | 61.9% | $192,824 | <at peak> | 24-May |
| Regional TAS | 45.8% | $161,600 | -4.1% | 22-May |
| Combined capitals | 31.5% | $207,012 | <at peak> | 24-May |
| Combined regional | 51.1% | $212,120 | <at peak> | 24-May |
| National | 35.6% | $206,387 | <at peak> | 24-May |
Note: Onset of COVID calculated from March 2020
What you need to know about median house prices
We’ve written a detailed article explaining why not to trust median property prices here.
However, understanding median house prices can be useful because they give investors a rough guide about the locations they can afford.
Yet they should never be considered to be the Holy Grail of property data, because of the tendency for median prices to jump around from quarter to quarter.
They are more a reflection of the properties recently sold in the area rather than what a particular property is worth.
In many locations understanding the median house price is almost worthless because of the variations of the great variation in sale prices for houses, which means the area does not have a homogeneous style of housing.
For example, you could get a significant variation in property value for similar properties when you compare the more desirable locations within a particular suburb, such as a property having water views with ones that are less desirable such as on a busy road or even on a secondary main road or too near the train or with views of the service station across the street.
As you can see, if a suburb has housing of variable quality, the median house price is not very useful because some properties are simply more valuable than others.
However, if a suburb has very similar housing, such as renovated older homes on large blocks or a newer suburb where most of its housing stock was built over a few years, the median house price would be more relevant.
Melbourne’s median property price
Here is the latest data on the median property prices for Melbourne.
Source: CoreLogic, 1st June 2024
Melbourne’s values have risen 11.2% since the onset of Covid, but are still -4.0% below their peak of March 2022.
Clearly the Melbourne housing market has not performed as strongly as some other capitals over the last year or two.
This creates a window of opportunity for strategic property investors as Melbourne property values have significant upside potential.
The average price of a Melbourne standalone house is the lowest it has been against its Sydney equivalent in around twenty years.
Why the underperformance of the Melbourne market?
Partly it might reflect the greater stock of housing available for sale in the Melbourne market relative to other states.
Also, investor demand has also been lower in Melbourne dues to discontent with the way the Victorian government is treating investors and favouring tenants.
Also one of the biggest short term influences on the property market performance is each city’s economy, and there is no doubt that there is plenty of negative sentiments about how the Victorian government is handling its economy.
However the Melbourne housing markets are fragmented and more than 50 Victorian suburbs saw house price growth exceed the average national average house price growth in 2023.
Not surprisingly, there is currently a flight to quality properties in Melbourne, with A-grade homes and “investment grade” properties still in short supply for the prevailing demand, but B Grade properties are taking longer to sell and informed buyers are avoiding C Grade properties.
Moving forward strong immigration and a lack of supply of properties will help keep pushing Melbourne property prices higher.
Melbourne’s auction results show the market depth experienced so far this year with multiple buyers vying for good properties.
Sydney’s median property price
Here is the latest data on the median property prices for Sydney.
Source: CoreLogic, 1st June 2024
The Sydney property market saw home values defy predictions and rise steadily for the last 17 months.
Sydney led this current property upturn starting to rise in January 2023 with fewer homes on the market at a time of increasing buyer demand underpinning the growth spurt with more than 90 per cent of Sydney suburbs increasing in value.
Positive demand drivers stemming from the shortages in rental supply and rebound in international migration are underpinning its growth.
The influx of new listings this year has been matched by robust demand fuelling further price increases.
However, growth momentum has slowed since the beginning of 2024, with both monthly and quarterly growth easing in April.
Moving forward, the various sectors of the Sydney property markets will be fragmented, which is a more “normal” property market.
Sydney auction clearance rate have been strong all year, showing significant depth in the market and suggesting sale prices will continue to keep rising this year.
Brisbane’s median property price
Here is the latest data on the median property prices for Brisbane.
Source: CoreLogic, 1st June 2024
Brisbane’s housing market skyrocketed during the pandemic with 56.81% trough to peak growth, and is currently at a new peak in price.
Our on-the-ground experience at Metropole Brisbane is that there is strong demand from both home buyers and property investors for A-grade homes and investment-grade properties.
Supply is struggling to keep up with the rising demand, further supporting rising home values.
At the end of last year, Brisbane auction market slumped a little, but Brisbane has never been city that held many auctions, however, as you can see from the chart below, the Brisbane auction market has been strong throughout 2024, suggesting property prices will keep rising.
Adelaide’s median property price
Here is the latest data on the median property prices for Adelaide.
Source: CoreLogic, 1st June 2023
The Adelaide property market was a little slower to boom than the east coast capital cities but once it got going it has remained one of the best-performing capital city property markets assisted by its relative affordability, with home prices up 14% year-on-year.
The comparative affordability of the city’s homes has seen prices defy the significant increase in interest rates since May 2022.
Low stock levels are also intensifying competition, with home prices in Adelaide rising at a fast pace over the past year.
CoreLogic data shows Adelaide values recorded a COVID-19 “trough to peak” growth of 61 per cent.
A dozen new suburbs entered Adelaide’s million-dollar club over the past year.
Seacliff, Glenelg North, Glengowrie, Clarence Gardens and North Brighton were among the 12 that hit the seven-figure median house price threshold as of December.
Malvern and St Peters’ median house prices surpassed $2m, joining Toorak Gardens – which was the only suburb with a $2m median in December 2022.
The city now has 64 suburbs with median house prices above $1m and three with median above $2m.
Like in most capital cities, low stock levels are also helping to insulate home values, with increased competition among potential buyers
The strong auction clearance rates are an indication of the depth of the Adelaide property market and while they started a little lower this year, the depth of buyer demand has kept Adelaide auction clearance rates remains high.
Perth’s median property price
Here is the latest data on the median property prices for Perth.
Source: CoreLogic, 1st June 2024
Perth has maintained its streak of relative outperformance and remains the strongest market in the country for monthly and annual home price growth.
But remember…Perth housing values remained flat for most of the last decade, but over the last 15 months house and unit values in Perth enjoyed their most significant increases and are currently at a new peak.
The relative affordability of the city’s homes, population growth, and very tight rental markets are also supporting home values.
However, I would avoid investing in Perth for a number of reasons:
- Currently East Coast property buyers are pushing up Perth property values, buying properties site unseen and paying prices well above market price. This means the investor has to overpay, they will regret down the track.
Our contacts on the ground in Perth advise us that East Coast buyers’ agents (NOT Metropole) are paying what they call “silly prices” significantly above what locals would pay, because properties are still relatively cheap in Perth. And they are buying these properties, site, unseen, creating significant risks for their clients. - The Western Australian economy is not as diverse as the other capital cities. While Perth is not a mining town, it is too dependent on a couple of industries – especially the mining industry which accounts for around 45% of the economic output and much of this is dependent on China, and this has a direct knock-on effect on WA house prices. The mining and energy companies are large employers in Perth. This means that the Perth property market is susceptible to a downturn in mining.
Apart from the large energy companies, most corporate head offices are located in the eastern capital cities. Management roles in head offices tend to attract higher salaries which, to some extent, support/underpin property prices. - Further, the larger east coast capital cities have significantly larger the population with more diverse the employment opportunities which in general attract higher salaries.
Hobart’s median property price
Here is the latest data on the median property prices for Hobart.
Source: CoreLogic, 1st June 2024
Hobart was the darling of speculative property investors and the best-performing property market in 2017- 2018
After rising 28.4% over the Covid period, Hobart dwelling values fell and are still 11.5% below their peak of March 2022.
Prices in Hobart continued to fall in April, declining 0.24% to now sit below levels seen this time last year.
Hobart remains the weakest capital city market when comparing annual price growth , as well as the change from peak.
Hobart was an underperformer for most of 2023 and is likely to remain so in 2024.
Darwin’s median property price
Here is the latest data on the median property prices for Darwin.
Source: CoreLogic, 1st June 2024
Darwin remains the most affordable city to purchase a house.
The city’s famously relaxed and laid-back lifestyle and the low-density population were a bonus in the post-pandemic era and drove interest in Darwin property.
After rising 26.2% over the Covid period, Darwin’s dwelling fell 5.3% after peaking on May 2014 and prices are still below their previous peak.
Canberra’s median property price
Here is the latest data on the median property prices for Canberra.
Source: CoreLogic, 1st June 2024
Home prices in Canberra were up (+0.5%) in May, and are also up 2.0% from their May 2023 levels.
Canberra’s property market was once the “quiet achiever” with median house prices recording 38.3% growth over the recent property boom.
A number of factors were driving house price increases in Canberra and the wider ACT including rising interest from international and interstate investors and tight land releases among others.
After rising 31.8% over the Covid period, Canberra’s dwelling values fell and are still 5.8% below their peak in May 2022.
However, the Canberra market seems to be picking up this year.
The subdued Canberra auction clearance rates throughout 2023 were a sign of the weakness of the Canberra property market last year and auction clearance rates in Canberra so far this year suggest slow growth in Canberra property prices this year also.
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