Knight Frank’s Global Residential Cities Index for the first quarter of 2022, which tracks traditional residential prices in 150 cities around the world, found that national capitals recorded some of the largest house price increases in 12 month in the world.
At the end of the last quarter, Brisbane was the only capital to feature in the top 10, recording 28.4% year-over-year price growth.
Hobart is another Australian location to break into the top 20, with residential properties in the city seeing an annual increase of 26%.
Adelaide was not far behind the Tasmanian capital, as the South Australian capital’s 25.1% annual growth rate secured the city 14th place on the list.
Canberra broke into the top 30 of the full list, coming in at 26th with an 18.4% year-on-year increase.
sydney was further down the list of 150 cities, ranking 31st with an annual growth of 16.1%. But the NSW capital managed to edge out Melbourne and , which rank 66th and 121st respectively. The Victorian capital recorded rate growth of 9.2%, while the Western Australian capital recorded a meager annual gain of 3.5%.
Overall, Australian cities saw an average gain of 18.3% year-on-year.
Knight Frank Australia Head of Residential Research Michelle Ciesielski commented on the figures, commenting that the country’s home price performance was heavily influenced by smaller cities and regional areas, which continued to see strong growth. prices until 2022.
“[This is] due to the relocation of families and digital nomads to more affordable locations, investors returning to the market in search of better rental yield, and others buying vacation homes for their retirement plans in the years to come. come,” she explained.
Commenting on the top three performing cities over the period, Ms Ciesielski said: “[Brisbane]Hobart and Adelaide, still have a financial buffer of $200,000 between their city’s median value and Australia, attracting first-time home buyers and investors from across the country.
The expert also pointed out that the top-ranked cities attracted high population growth compared to the Australian average in 2021. Ms Ciesielski noted that this increase in the number of rental space seekers had a profound impact, particularly on the rental market.
“As a result, the total vacancy rate was well below the Australian average of 2.8%, down from 0.5% to 0.9%, with weekly rent growth outpacing the Australian average of 8%, registering a rent growth range of 8.5% to 12.8″. percent by the end of the first quarter of 2022,” Ms. Ciesielski said.