The total value of Australia’s homes has hit a record and prices are expected to keep ticking higher as economic conditions improve.
Australia’s residential property prices keep on climbing, with the mean price of putting a roof over your head now approaching $700,000.
Australian Bureau of Statistics figures released on Tuesday show dwelling prices rose 0.8 per cent in the September quarter in all capital cities apart from Melbourne, where prices slipped 0.3 per cent due to the impact of COVID-19 restrictions.
Brisbane led the increases, up 1.5 per cent, followed by Sydney, up 1 per cent.
“New lending commitments to households, auction clearance rates and sales transactions all improved during the September quarter,” ABS head of prices statistics Andrew Tomadini said.
“Substantial (transaction) increases were observed in Sydney and Brisbane.”
Over the 12 months to the September quarter, residential property prices lifted 4.5 per cent, with increases in all capital cities except Darwin.
The biggest jump over the year was Hobart, up 6 per cent.
The ABS figures show total value of Australia’s 10.6 million residential dwellings rose by $87.8bn to a record $7,283.3bn, with the mean price of residential dwellings now $689,500.
And according to CoreLogic data, housing values moved to new record highs in Brisbane, Adelaide, Hobart and Canberra through November.
“Super-low interest rates and an improving job market should keep home prices ticking higher,” CommSec chief economist Craig James said.
“The number of homes is growing at a slightly higher annual rate than Australia’s population.
“The interest point over the next year will be whether the average household size increases or decreases.”
CommSec estimates that the number of people per home eased from around 2.443 in the June quarter to 2.439 in the September quarter.
“Younger Aussies may take advantage of first-home owner grants and low interest rates and build homes,” Mr James said.
“But other families may opt for greater cohabitation.”
The mean price of residential dwellings in Australia is now $689,500.Source:istock
The CoreLogic data shows total dwelling values around Australia in November was up 0.8 per cent over the month.
“The national home value index is still seven-tenths of a per cent below the level recorded in March, but if housing values continue to rise at the current pace, we could see a recovery from the COVID downturn as early as January or February next year,” head of research Tim Lawless said.
“The recovery in Melbourne, where home values remain 5 per cent below their recent peak, will take longer.”
CoreLogic said both Sydney and Melbourne home values remained at levels similar to those seen in early 2017.
Dwelling prices reached new record highs in Brisbane, Adelaide, Hobart and Canberra. Picture: NCA NewsWire/Jenny EvansSource:News Corp Australia
While rising, Perth values are similar to mid-2006 levels, while Darwin values are in line with 2007 levels.
At the end of last month, the cheapest median dwelling price was Darwin at $405,857, while Sydney was the most expensive at $860,967.
CoreLogic data also shows every capital city recorded a rise in residential rent prices last month – the first time since January.
The top performing rental market was Perth, where rents leapt 8.2 per cent in the year to November but were still 11.7 per cent lower than the peak in 2013.
Article Source: news.com.au
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