House Prices Increase At Highest Quarterly Rate In A Decade
The weighted average capital city median price is well up for houses and other dwellings.
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Australian house prices are rising at the highest quarterly rate in 10 years, according to the latest Real Estate Market Facts report from the Real Estate Institute of Australia (REIA).
According to REIA President, Adrian Kelly, the weighted average capital city median price increased by 6.8% for houses and by 2.7% for other dwellings.
“Over the March quarter, the weighted average median house price for the eight capital cities rose to $873,911 with all cities increasing except Canberra. At $1,309,195, Sydney’s median house price continues to be the highest amongst the capital cities, 49.8% higher than the national average. At $500,000, Perth has the lowest median house price across Australian capital cities, 42.8% lower than the national average.
“Over the 12 months to the March quarter, the weighted average capital city median house price increased by 11.1%.
“The weighted average median price for other dwellings for the eight capital cities increased to $621,313, a quarterly increase of 2.7%,” said Mr Kelly.
Mr Kelly also added that median prices for other dwellings increased in Sydney, Melbourne, Perth, Hobart and Darwin, remained steady in Brisbane and Canberra but decreased in Adelaide.
The median rent for 3-bedroom houses increased in all capital cities over the March quarter to a median of $452.50 per week.
“Over the past 12 months, the median rent increased in all capital cities except Melbourne where it remained steady. Darwin had the highest annual growth at 17.3% and now has the second highest rent at $538.50 a week with Canberra the highest at $570 per week.
According to the report, the national capital city vacancy rate is at 3.3% primarily up due to Melbourne’s rate of 6.1%.
Mr Kelly concluded the growth coincides with the April 2021 Lending to Households and Business figures released by the Australian Bureau of Statistics which show that the value of new loan commitments for housing rose for the second consecutive month after a brief fall in February which came after eight consecutive months of growth.
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In signs that confidence is returning to the Australian property market, the combined capitals recorded their highest preliminary clearance rates since April last year, CoreLogic reports.
More than 2,290 homes went to market across capital cities last weekend with early data revealing a 71 percent clearance rate. This compares with a revised clearance rate of 64.2 percent last week. It marks the second busiest auction week to date this year.
Melbourne led the way, with 1,122 homes taken to auction. Of the 916 results collected so far, 73.5 percent were successful. It was a similar story in Sydney, with 791 homes to go under the hammer. Preliminary results indicate a clearance rate of 71.5 percent.
The smaller capitals including Brisbane, Adelaide and Canberra all experienced higher clearance rates week on week, with Adelaide out in front at 78.6 percent. It was a less spectacular result in Canberra, with a 59 percent clearance rate and in Brisbane at 56 percent.
In Perth, just three of the 13 auctions tallied so far were successful.
