INDUSTRY NEWSNEWS

House prices rise at the highest rate in 20 years

Australian house prices have increased by 23.4 per cent over the past year, the highest rate of growth in 20 years, according to recent Real Estate Institute of Australia’s (REIA) figures. 

The REIA’s Real Estate Market Facts report revealed this was the first time since June 2002 that the annual increase had been higher than 20 per cent. 

REIA President Adrian Kelly said over the September quarter, the weighted average capital city median price increased by 4.5 per cent for houses and by 1.4 per cent for other dwellings.

“The weighted average median house price for the eight capital cities increased to $961,642. Over the quarter, the median house price increased in all capital cities,” Mr Kelly said. 

“At $1,499,126, Sydney’s median house price continues to be the highest amongst the capital cities, 55.9 per cent higher than the national average.”

At $520,000 Perth had the lowest median house price across Australian capital cities, 45.9 per cent lower than the national average, the report showed. 

The weighted average median price for other dwellings for the eight capital cities increased to $650,876, a quarterly increase of 1.4 per cent.

“Over the quarter, the median price for other dwellings increased in Sydney, Melbourne, Brisbane, Perth and Hobart but declined in Adelaide, Canberra and Darwin,” Mr Kelly said. 

“At $802,475, Sydney’s median price for other dwellings continues to be the highest amongst the capital cities, 23.3 per cent higher than the national average.”

At $410,000 Perth has the lowest median price for other dwellings across Australian capital cities, 37 per cent lower than the national average.

According to Mr Kelly, the weighted average median rent for three-bedroom houses in the eight capital cities increased to $464 per week, a quarterly increase of 2.4 per cent.

“The median rent for three-bedroom houses increased in all capital cities except Melbourne where it remained stable,” he said. 

“During the quarter, the weighted average median rent for two-bedroom other dwellings increased to $430 a week. 

“The median rent increased in all capital cities except in Brisbane, Adelaide and Hobart where it remained stable,” he said.

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Nicole Madigan

Nicole Madigan is Senior Journalist and Content Producer for Elite Agent.