Median Unit Prices – March 2021
ADELAIDE
Adelaide house prices rose 3.7 per cent during the March quarter to a new record high of $599,706.
Powell said Adelaide’s south recorded double-digit annual house price growth at 11.6 per cent, but it remained the third most affordable city in which to buy a house after Perth and Darwin.
“For the first time on record it is now more affordable to purchase a house in Adelaide than Hobart,” she said.
“For houses and units, current sale transactions are at the highest level since 2007 … the flow of new listings has not been able to keep pace with buyer demand.
“Interstate migration has been a constant drain on housing demand, however the stark turnaround has netted a positive flow of residents into South Australia for two consecutive quarters – the first half year rise in almost three decades.”
Unit prices in Adelaide increased 1.1 per cent during the quarter to $344,062.
PERTH
Perth house prices have reached their highest point in about five years and unit prices are the highest in almost three years according to Domain’s quarterly report.
“House prices rose 2.4 per cent over the March quarter, the fourth consecutive quarter of growth. Units notched a third consecutive quarter of growth, up 3.9 per cent … this uninterrupted run of price growth has not occurred since 2013 in the lead-up to the previous price peak reached in 2014,” Powell said.
“Houses remain $37,000 lower and units $50,000 lower than the 2014 record highs, with the price gap rapidly closing.
“It would take another three consecutive quarters at the exact same pace of percentage growth recorded over the March quarter for house prices to surpass the 2014 high.”
Powell said while Perth remained an affordable housing market, the rising prices were creating pressure to purchase before they accelerated too far.
HOBART
Median house prices in Hobart have cracked $600,000 to a hit a record high.
Prices soared 7.6 per cent over the March quarter to $601,567 according to Powell.
“This is the steepest quarterly jump since 2017,” Powell said.
“This has pushed annual gains 15.9 per cent higher, the biggest jump since 2018… [and] it appears that house price growth is accelerating.
“At the end of 2019 Hobart was the most affordable capital to purchase a house.”
According to Powell, house and unit prices have increased 73 per cent and 67 per cent respectively during the past five years, surpassing every other capital city in Australia.
CANBERRA
Canberra house prices are inching closer to a median value of $1 million after a 9.7 per cent lift during the March quarter. It has experienced the fastest acceleration of house price growth since Domain began recording the data in 1993, now with a median value of $927,577.
“This has pushed annual house price gains to 19.5 per cent, the steepest annual increase in 17 years,” Powell said.
“Canberra is a breakaway performer compared to the other capital cities, recording the strongest annual and quarterly house price growth.”
Powell said the strongest gains were at the upper end of the market in North Canberra, South Canberra and Woden Valley with a median above $1 million. She said it was largely due to higher average wages, job security and low mortgage rates encouraging people to upsize.
“Another quarter at the same percentage growth rate would push house prices above $1 million,” she said.
“This level of quarterly growth is normally the output of an entire year and is extremely rare for Canberra to experience in one single quarter.”
DARWIN
Following a multi-year downturn, prices have begun to improve in Darwin, according to Powell.
“For houses, this recovery continued and prices have hit the highest point since late 2018,” she said.
“House prices jumped 9.1 per cent during the March quarter to $554,295, the steepest quarterly rise since 2009.
“Unit prices declined a marginal 1.8 per cent over the quarter to $293,731.”
Powell said while prices had increased they were still $124,000 below the 2013 peak.