Australian property prices rose 0.6 per cent in March, capping off a solid first quarter of 2024 in which median home values lifted about $12,000. Property prices rise 0.6 per cent in March as Perth heats up. Every capital city except Darwin saw median dwelling values rise over the past month, CoreLogic figures published on Tuesday showed.
Perth led the way at 1.9 per cent, followed by Adelaide (1.4 per cent) and Brisbane (1.1 per cent). Australia’s largest capital Sydney experienced more moderate growth of 0.3 per cent against higher dollar valuations.
Home values rose again in March, extending the streak to 14 months, according to new data.
CoreLogic said its national Home Value Index rose 0.6 per cent in March, for a quarterly total of 1.6 per cent. Since declining 7.5 per cent between April 2022 and January 2023, the national Home Value Index (HVI) has increased 10.2 per cent, or, in dollar terms, by about $71,832, rising to new record highs each month since November last year.
Change in property values
| City / Region | Monthly (%) | Quarterly (%) | Median Value |
| Sydney | 0.3% | 0.9% | $1,139,375 |
| Melbourne | 0.0% | -0.2% | $778,892 |
| Brisbane | 1.1% | 3% | $817,564 |
| Adelaide | 1.4% | 3.3% | $734,173 |
| Perth | 1.9% | 5.6% | $703,502 |
| Hobart | 0.2% | 0.1% | $649,097 |
| Darwin | -0.2% | 0.4% | $498,433 |
| Canberra | 0.4% | 0.8% | $838,976 |
| Combined Capitals | 0.6% | 1.5% | $848,475 |
| Combined Regional | 0.6% | 1.8% | $620,032 |
| National | 0.6% | 1.6% | $772,730 |
House prices beat expectations
Median values rose 1.6 per cent over the quarter nationally, up from 1.4 per cent over the final three months of 2024 as the property market continues to shrug off the effects of higher interest rates on borrowers.
CoreLogic’s national home value index has now increased 10.2 per cent, or $71,832, since falling 7.5 per cent between April 2022 and January 2023.
CoreLogic said that markets are continuing to “traverse the high interest rate and high cost-of-living environment better than most would have expected” amid ongoing levels of high housing demand.
Though the pace of the rebound since April 2022 has moderated, with Lawless saying the market has not been immune from broader economic conditions. “Rate hikes, cost-of-living pressures and worsening housing affordability are all factors that have contributed to softer housing conditions since mid-last year,” Lawless said.
Perth property prices surge
Property prices have risen an astonishing 5.6 per cent over the March quarter in Perth, taking median values to $703,502 in the past month.
It’s being caused by elevated levels of migration, CoreLogic said, with net overseas migration of 18,122 in the September quarter of 2023, which is several times higher than the decade average of 4639. “The extreme flip in demographic trends has delivered a significant positive demand shock across WA housing,” CoreLogic said.
Cheaper properties lead upswing
Another interesting part of the upswing in early 2024 is that properties on the lower end of the value scale are driving faster growth than more expensive homes.
Lower-quartile home values are now up 3.1 per cent in the first quarter of this year compared to 0.7 per cent for the most expensive dwellings. That’s a flip from last year, where more expensive properties in the upper quartile of the value distribution drove growth.
Additionally, housing affordability issues have seen lower-priced homes lead the growth, with values for higher-priced homes increasing by less.
“With housing affordability becoming more challenging and borrowing capacity lower than a year ago, it’s no surprise to see demand being skewed towards the middle-to-lower end of the value spectrum,” Lawless said. Nonetheless, home sales are up in numbers as well, by an estimated 3.7 per cent in the first quarter compared to the decade average for this time of year.
Source: CoreLogic
How can we help?
If you have any questions or would like further information or you are seeking property tax advice, please feel free to contact our office via email –info@investplusaccounting.com.au or phone 02 9299 7000 to either speak with someone or arrange a time for a meeting so we can discuss your requirements in more detail. You can arrange a free 15 minute no obligation chat to discuss your options. Please arrange an appointment with our office by clicking here
General Advice Warning
The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.
Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Investment Plus Accounting Group, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.