Australian house prices are now taking more than 15 years to double in value, on average, despite property prices surging during the pandemic.
It’s commonly believed property prices double every seven to 10 years. However, new PropTrack research found this was no longer the case.
Houses are now taking an average of 15.4 years to double in value as of May 2023, while units have taken even longer, at 17.8 years.
PropTrack director of economic research Cameron Kusher said it had taken many years for median prices to double in value across most parts of the country, despite the upswing in prices at the beginning of the pandemic.
“This highlights that, as the cost of housing has increased, the percentage gains in prices have reduced,” Kusher said.
“Rising interest rates and much higher prices, along with other economic and demographic factors, will weigh on the prospects of prices doubling in the future.”
The regions doubling the fastest
Hobart houses doubled in price faster than any other region, taking 6.8 years to reach a median price of $720,000. Perth and regional Queensland houses took the longest to increase twofold, both taking 17.8 years.
The Tasmanian capital also recorded the fastest growth for units, doubling in price to $380,500 in just 7.8 years. Units in Perth took the longest - at 19.2 years - to reach $395,000.
Prices in Tasmania were previously the cheapest in the country, Kusher said, but this had now changed.
“With the rapid increases in prices over recent years, Hobart is now the fifth-most-expensive capital city for houses and the fourth-most-expensive for units. Tasmania is also the fastest state to see prices double,” he said.
For Sydney residents, it has taken 9.6 years, on average, for house prices to double to $1,308,000, and 17.3 years for unit prices to double to $749,999.
Melbourne houses have doubled in 13.1 years to a median price of $880,000, while units have doubled in 16.5 years to $600,000.