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Capital city home prices go up in a ‘resilient’ Australian property market

Median house prices in all Australian cities increased by 0.4 per cent during the September quarter, despite the effects of COVID-19.

The REIA Real Estate Market Facts Report for the September 2020 quarter revealed the average capital city median price increased by 0.4 per cent for houses and by 0.7 per cent for other dwellings.

The largest increase over the past year was 10.6 per cent in Canberra while Sydney’s median house price continued to be the highest among the capital cities, at 49.2 per cent higher than the national average.

Perth and Darwin had the lowest median house price across Australian capital cities at $480,000.

Brisbane increased 1.7 per cent over the past quarter and 2.1 per cent in the past year.

Adelaide’s median house price rose 3.1 per cent in the last quarter and 4 per cent over the last 12 months.

Perth house prices increased 0.8 per cent in the quarter but recorded a decrease in the last year.

Tasmania experienced the best growth since late 2017, and a quarterly jump in house prices by 1.9 per cent in Hobart.

Vacancy rates for rental properties in Sydney have increased substantially over the past year with Sydney at 4.3 per cent and Melbourne recording 3.7 per cent.

REIA President Adrian Kelly said 2020 would go down in history books.

“The September 2020 quarter showed overall a remarkable resilience even in Victoria despite Melbourne’s Stage 4 lockdown,” Mr Kelly said.

“The median Melbourne house sale price decreased just 1.7 per cent over the height of the industry being shut down for the quarter but increased over the past year.

“The challenges of 2021 remain significant: the continued resumption of mortgage deferrals, the lasting impacts of new foreign policy settings for residential property and the uncertain future of international tourism, international students and immigration.

“Positively addressing many of these challenges will hinge on the roll out of a vaccine. But 2021 will also see the changes to consumer credit rules and stamp duty reforms or waivers in Australia’s two biggest property markets which should help pique buyers’ interest.”

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Thérèse Murray

Therese Murray is a Senior in house journalist with Elite Agent with experience across a wide range of titles.