Property prices have hit yet another record, with the combined capital city house and unit prices rising by up to 1 per cent in the March quarter.
According to the latest Domain House Price Report for the March quarter, capital city house prices jumped 1 per cent to a median of $1.112 million.
Capital city units rose 0.6 per cent to a median of $637,578.
For the first time, Sydney house prices have risen above $1.6 million, after climbing 2.1 per cent in the March quarter.
House prices in Sydney, Brisbane, Adelaide and Perth are all at record highs, as are unit prices in Brisbane, Adelaide and Perth.
Perth’s unit prices soared to a record high of $425,638, after recording an 8.1 per cent quarterly gain, which is the fastest in 3.5 years and a 17-year-high annual gain of 17.2 per cent.
Despite the jumps, price growth is actually slowing down.
House price growth was slower in the March quarter, compared to the previous quarter, in Sydney, Brisbane, Melbourne, Adelaide, Perth and Darwin.
Unit price growth also eased in Melbourne and Adelaide.
Domain Chief of Research and Economics, Dr Nicola Powell, said the price slowdown in the March quarter was due to increased supply of properties coming to the market.
“However, a reduction in the cash rate could shift this trend, potentially increasing housing turnover,” she said.
“Meanwhile, Perth and Brisbane have experienced a long-term decrease in the number of properties for sale, which has contributed to significant price growth in these cities.”
Darwin prices revealed two different stories, with house prices dropping 8.6 per cent in the March quarter to $573,856, while unit prices climbed 5.8 per cent to $387,509.
For the combined regional areas, house prices fell 1.1 per cent in the March quarter to $590,378.
For units, prices climbed 2.6 per cent to $465,711
Despite the challenges of cost-of-living pressures, Dr Powell said property prices were expected to rise further this year.
“This upward trend is driven by various factors, including a chronic shortage of new
homes, strong population growth, high building costs, and a tight rental market, all of which boost housing demand,” she said.
“The shortage of new housing is likely to persist, as new dwelling approvals have dropped to a nearly 12-year low after trending downward over the past two years.
“This ongoing scarcity will maintain pressure on our housing supply.”
Dr Powell said challenging rental conditions would likely push first-home buyers into fast tracking their homeownership journey.
“We expect increased demand at the more affordable end of the market, particularly for units,” she said.
“This trend will likely affect affordable markets such as Perth, Brisbane, and Adelaide, along with units in higher-priced markets like Sydney.”
