National home prices rose 0.3 per cent in March, pushing the median home value to $908,000 – but the pace of growth is clearly slowing across the country.
More than three-quarters of SA4 regions recorded weaker monthly growth compared to February, signalling what PropTrack describes as “a clear turning point in the cycle” as rising interest rates weigh on the market.
“Overall, the market is shifting into a slower-growth phase, with a rising likelihood of flat or declining prices in some markets in the months ahead, even as structural supply shortages cushion the moderation,” said Eleanor Creagh, REA Group Senior Economist.
Price falls are beginning to emerge in some inner and middle-ring markets, most notably in Sydney and Melbourne, though outright declines remain limited for now.
The slowdown comes as recent rate rises erode borrowing capacity and affordability, already stretched thin for many buyers.
However, a resilient labour market, population growth and first-home buyer support continue to underpin demand against limited supply.
Capital cities diverge
Brisbane led capital city growth in March, up 0.7 per cent, followed by Perth at 0.5 per cent and Adelaide at 0.4 per cent. Capital city prices overall rose 0.3 per cent, lifting the median to $1,016,000.
Perth remains the standout performer over the year, up 20.9 per cent, with Brisbane following at 17.7 per cent, Darwin at 16.8 per cent and Adelaide at 14.6 per cent.
Units gaining ground
Monthly unit price growth more than doubled house price growth in March, suggesting buyers are pivoting toward more affordable stock as borrowing capacity tightens.
“This suggests demand is stronger for more affordable stock as borrowing capacity has been constrained further by recent rate rises,” Ms Creagh said.
Regions outpace capitals
Regional prices climbed 0.4 per cent in March and are up 11.0 per cent year–on–year outpacing capital city growth of 8.8 per cent over the same period.
Over five years, the gap is even wider: regional prices have risen 57 per cent compared to 39 per cent in the capitals, supported by relative affordability and lifestyle appeal.
Despite the slowdown, national prices remain 9.4 per cent higher than a year ago, adding around $94,800 to the value of the median home.