Smaller capital cities lead quarterly property price hikes

The rises in residential property prices were led by Adelaide (1.6 per cent) and Brisbane (1.5 per cent), followed by Perth (1.4 per cent), Hobart (1.2 per cent), Sydney (1.0 per cent), Canberra (0.9 per cent) and Darwin (0.8 per cent). Meanwhile, property prices fell -0.3 per cent in Melbourne.

The total value of Australia’s 10.6 million residential dwellings rose by $87.8 billion to $7,283.3 billion over the quarter. The mean price of residential dwellings in Australia is now $689,500, an increase of $5,400 from the past quarter.

The mean price of residential dwellings in NSW ($888,900) remains the highest in the country, followed by Victoria ($738,600) and then the ACT ($721,000). The lowest mean price is in the Northern Territory ($425,200).

According to the head of prices statistics at the ABS, Andrew Tomadini: “Results for Sydney and Brisbane are in line with housing market indicators. New lending commitments to households, auction clearance rates and sales transactions all improved during the September quarter.”

“Property prices continued to fall in Melbourne in the September quarter, due to the impacts of COVID-19 restrictions. Melbourne house prices fell 0.3 per cent and attached dwelling prices fell 0.2 per cent.”

Across the capital cities, house price index rose 1.0 per cent over the quarter, following a 2.1 per cent fall in the June quarter 2020. Through the last 12 months, it rose 5.0 per cent.

Meanwhile, attached dwelling price index rose 0.3 per cent over the quarter, following a 1.2 per cent fall in the June quarter 2020. Through the last 12 months, it rose 3.1 per cent. ‘Attached dwellings’ include flats, units and apartments, plus semi-detached, row and terrace houses.

Looking at the past year, or the last 12 months to the September quarter 2020, residential property prices rose 4.5 per cent, with rises in all capital cities except Darwin.

During the time period, Hobart led the charge with an increase of 6.0 per cent, followed by Sydney (5.4 per cent), Canberra (5.0 per cent), Melbourne (4.7 per cent), Brisbane (3.1 per cent), Adelaide (2.6 per cent) and Perth (2.4 per cent). Meanwhile, property prices fell in Darwin by -0.7 per cent.