Property prices have increased at the highest quarterly rate in a decade a new report has found, with Sydney still the most expensive capital city to buy a house in.
The latest Real Estate Institute of Australia Real Estate Market Facts report shows that the weighted average capital city median price increased by 6.8 per cent for houses and by 2.7 per cent for other dwellings.
REIA President Adrian Kelly said that in the March quarter the weighted average median house price for the eight capital cities rose to $873,911, with all cities increasing except Canberra.
“At $1,309,195, Sydney’s median house price continues to be the highest amongst the capital cities, 49.8 per cent higher than the national average,” he said.
“At $500,000, Perth has the lowest median house price across Australian capital cities, 42.8 per cent lower than the national average.”
The past 12 months to the March quarter has seen the weighted average median house price in a capital city increase by more than 11 per cent.
“The weighted average median price for other dwellings for the eight capital cities increased to $621,313, a quarterly increase of 2.7 per cent,” Mr Kelly said.
“Over the quarter, the median price for other dwellings increased in Sydney, Melbourne, Perth, Hobart and Darwin, remained steady in Brisbane and Canberra but decreased in Adelaide.
“Over the 12 months to the March 2021 quarter, the weighted average capital city median price for other dwellings increased by 3 per cent.”
The median rent for three-bedroom houses also increased in all capital cities over the March quarter, to a median of $452.50 per week.
“Over the past 12 months, the median rent increased in all capital cities except Melbourne where it remained steady,” Mr Kelly said.
“Darwin had the highest annual growth at 17.3 per cent and now has the second highest rent at $538.50 a week, with Canberra [as the] the highest at $570 per week.
“During the March quarter, the median rent for two-bedroom other dwellings increased in Brisbane, Adelaide, Perth, Canberra, Hobart and Darwin, remained steady in Melbourne but decreased in Sydney.”
Perth had the largest rise over the quarter, at 8.3 per cent.
In the 12 months to the March quarter the median rent for two-bedroom other dwellings increased in most capital cities, but dropped in Sydney and Melbourne.
According to the report, the national capital city vacancy rate is at 3.3 per cent, primarily up due to Melbourne’s rate of 6.1 per cent.
Mr Kelly said the growth coincides with the April 2021 Lending Indicators released by the Australian Bureau of Statistics.
These figures show the value of new loan commitments for housing have risen for the second consecutive month after a brief fall in February, which came after eight consecutive months of growth.