Property Growth Pace Picks Up

Property price growth has picked up pace, increasing at its fastest rate in four years.

New price data from PropTrack shows that during February national home prices grew by 0.5% and are up by 9.1% over the past 12 months.

Median dwelling prices are now about $90,000 higher than at the same time last year.

PropTrack Senior Economist, Eleanor Creagh, says the monthly increase brings the national median dwelling value to $897,000. Houses are $996,000 and units are $730,000.

The latest increases bring the combined capital city dwelling value to more than $1 million for the first time.

According to the data, Australia’s smaller capital cities are continuing to outperform, led by Hobart which was the performing capital in February, followed by Brisbane and Adelaide.

Unit markets are still performing well with capital city unit markets outpacing house markets as buyers continue to seek out more affordable options.

According to Cotality data, Sydney and Melbourne values are flatlining while the mid-sized capitals continue to record solid growth.

Research director, Tim Lawless, says while Sydney and Melbourne have traditionally led Australia’s housing cycles, the slowdown in Sydney and Melbourne could signal an easing in growth conditions elsewhere down the track.

“But for now, the mid-sized capitals continue to see support from extremely low inventory levels, which is boosting the growth in values,” he says.

Lawless says there is a lot of competition for lower-priced properties.

“First home buyers, investors and subsequent buyers are all competing across this sector of the market, while credit is less available across the higher price points due to serviceability constraints.”