House prices rise as rent crisis deepens

REIA Chairman Hayden Groves said the report showed continued growth in the Australian residential property market had peaked in the industry valued at $10.2 trillion.

Mr Groves pointed out that ‘the capital’s weighted average median price rose 0.8% for houses, but fell 0.8% for other dwellings’. These increases in value drove the combined median house price in the eight capitals to $1,033,621 at the end of the quarter, although Melbourne, Darwin and Canberra did not see price increases during this period.

“The increases ranged from 0.1% in PerthPerth, TAS Perth, WA at 8.2% in Adelaide,” Mr Groves said.

“At $1,590,932, the median house price in Sydney continues to be the highest among the capitals, 53.9% above the national average. At $525,750, Perth has the lowest median property price of any Australian capital city, 49.1% below the national average, demonstrating the relative value of the Western Australian market.

Unlike house prices, home values ​​fell last quarter, with Groves pointing out that they have fallen 0.8% in the three months from March to now at $656,692.

He also said that as well as having the highest house prices, Sydney has the highest median house price, despite being one of four capitals where house values ​​have fallen.

“During the quarter, the median price of other accommodation increased in Brisbane, Adelaide and Darwin, remained stable in Perth and decreased in Sydney, Melbourne, Canberra and Hobart. At $756,524, Sydney’s median house price for other accommodation continues to be the highest among the capitals, 21.3% above the national average,” he said.

“At $415,000, Perth and Darwin have the lowest median price for other accommodation in Australian capital cities, 36.8% below the national average. In the 12 months to the March quarter, the capital’s weighted average median price for other dwellings increased by 5.1%.

Mr Groves also added that the report underscored how serious the national rent crisis was, with rising rents in most capitals and regional towns coupled with extremely low vacancy rates highlighting the difficulties faced by renters. tenants.

“Most major cities saw fewer rental units available than in the previous quarter with declines in vacancy rates in Sydney (2.3%), Brisbane (0.9%), Adelaide (0.4%) , Canberra (0.5%) and Darwin (1.6%). percent).

“Vacancy rates stabilized in other centers but remained extremely tight in Hobart at 0.9%, but improved in Perth (1.2%) and Melbourne (5.2%),” did he declare.

“House rents in the March quarter, with the weighted average median rent for three-bedroom houses in the eight capitals rising to $488 per week, a quarterly increase of 3.5%.”

The weighted average for other two-bedroom units rose 3.4% in the quarter, now at $450 per week.

Mr Groves said the report’s findings were a reminder of the need to support private residential rental housing in Australia and expressed the institute’s eagerness to carry out future work with the Federal Government to address key issues facing the Australian real estate sector, in particular the rental supply.

House prices rise as rent crisis deepens

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Last update: June 17, 2022

Posted: June 18, 2022