For the 20th consecutive month, headline national home values increased by a modest 0.4%, signalling that the strong momentum is beginning to leave the market. This is demonstrated by housing values rising just 1% for the September quarter, the lowest over a rolling three-month period since March 2023. Perth continues to be the strongest performer, growing by 1.6% for the month, followed by Adelaide and Brisbane with increases of 1.3% and 0.9%, respectively. Sydney and Darwin were the only other markets to see increases, rising by 0.2% and 0.1% for the month, while Melbourne, Canberra, and Hobart all saw housing values ease, with decreases of 0.1%, 0.3%, and 0.4%, respectively.

Property Values as at 30th of September 2024

Median Dwelling Values as at 30th of September 2024

Quick Insights

Rate hold slows buyers, but investor confidence remains strong

Profits from home sales nationwide climbed to a record high of $285,000 on average in the June quarter.

The RBA's decision to keep interest rates steady has left many homebuyers waiting, as borrowing power remains limited. While a future rate cut is anticipated, it won't significantly boost demand until it happens. Meanwhile, investors are showing renewed interest, particularly in Melbourne, where the market is stabilising despite an increase in listings. A rate cut could lead to a faster recovery than expected.

Source: Australian Financial Review

Australia's housing market soars to record $11 trillion

Australia's housing market hit a record $11 trillion in September, with home values rising 6.7% over the past year, adding $900 billion in wealth.

Despite higher interest rates, new listings and strong investor activity continue to drive the market. Over the past decade, house prices surged by 85.9% nationwide, with suburbs in Sydney, Brisbane, and Melbourne leading long-term growth.

While price growth is expected to slow, strong demand and new housing developments will continue to support the market.

Source: Australian Financial Review

Author: Filippo Sciacca, Director - Investor Relations, Asset Management and Compliance