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Move over Sydney: 4 capitals where property prices are soaring

Property: The city skylines of both Brisbane and Adelaide.
Property prices in Brisbane and Adelaide have grown significantly in the past 12 months. (Source: Getty)

Property prices are still rising, albeit at a slower pace than we saw last year, with the average price for a house in Sydney now more than $1.1 million.

But, while prices in Sydney have risen 17.7 per cent in the 12 months to March this year, other capitals have risen as much as 29.3 per cent.

The latest figures from CoreLogic show national home values were up 0.7 per cent in March, a subtle increase on the 0.6 per cent lift recorded in February.

The uptick in the monthly rate of growth was primarily driven by stronger conditions in Brisbane, Adelaide, Perth and the ACT, along with several regional areas, offsetting a slip in values across Sydney and Melbourne.

The first quarter of the year has seen Australian dwelling values rise by 2.4 per cent, adding approximately $17,000 on average to the value of an Australian home.

A year ago, values were rising at more than double the current pace, up 5.8 per cent over the three months to March 2021 before the quarterly rate of growth peaked at 7 per cent over the three months ending May 2021.

Sydney’s growth rate is showing the most significant slowdown, falling from a peak of 9.3 per cent in the three months to May 2021, to 0.3 per cent in the first quarter of 2022.

Melbourne’s housing market has seen the quarterly rate of growth slow from 5.8 per cent in April last year to just 0.1 per cent over the past three months.

CoreLogic’s research director, Tim Lawless, said while the monthly rate of growth was up among some cities and regions, there was mounting evidence housing growth rates were losing momentum.

“Virtually every capital city and major rest-of-state region has moved through a peak in the trend rate of growth some time last year or earlier this year,” Lawless said.

“The sharpest slowdown has been in Sydney, where housing prices are the most unaffordable, advertised supply is trending higher and sales activity is down over the year.

“There are a few exceptions to the slowdown, with regional South Australia recording a new cyclical high over the March quarter, and some momentum is returning to the Perth market where the rate of growth is once again trending higher since WA reopened its borders.”

With the softening in market conditions, the national annual growth rate (18.2 per cent) has fallen below the 20 per cent mark for the first time since August last year, after reaching a cyclical high of 22.4 per cent in January 2021.

Lawless said the annual growth trend will fall sharply in the coming months, as the strong gains recorded in early 2021 drop out of the 12-month calculation.

Capital city price rises

This is how each capital city has performed over the past 12 months, along with the average house price.

  1. Sydney, up 17.7 per cent - $1,116,889

  2. Melbourne, up 9.8 per cent - $805,232

  3. Brisbane, up 29.3 per cent - $749,293

  4. Adelaide, up 26.3 per cent - $602,717

  5. Perth, up 7 per cent - $542,338

  6. Hobart, up 22.3 per cent - $731,849

  7. Darwin, up 10.6 per cent - $494,635

  8. Canberra, up 21.6 per cent - $932,704

Including all capital and regional areas in the country, the average price for a home in Australia is $738,975.

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