Property prices hit record high despite growth slowing

Australian property prices have hit a new record high, climbing 0.22 per cent in November, according to PropTrack.

The Home Price Index showed nationally, home prices have jumped 5.53 per cent this year and is 1.29 per cent higher than the previous peak recorded in March 2022.

The current median value for a property in Australia is $761,000.

PropTrack Senior Economist and report author Eleanor Creagh said national home price growth had slowed in November, with the spring selling surge offering more choice for buyers.

“Strong housing demand, buoyed by record net overseas migration, tight rental markets, low unemployment and home equity gains, has worked alongside limited housing stock to offset the impacts of higher interest rates this year,” she said.

“Despite interest rates climbing again in November and the flow of listings hitting the market increasing, housing demand has remained strong and national prices have now risen for 11 straight months. 

“Meanwhile, the sharp rise in construction costs and labour and materials shortages have slowed the delivery of new builds, hampering the supply of new housing.”

Despite growth slowing in Sydney, prices still hit a record high in November, climbing 0.32 per cent to a median value of $1.06 million.

Sydney prices have grown 8.27 per cent so far this year and are now 1 per cent above their previous peak recorded in February 2022.

All capitals, except Dariwn, recorded price rises in November, with Perth leading the way with a 0.74 per cent hike month-on-month.

Adelaide (0.34 per cent), Sydney (0.32 per cent) and Canberra (0.32 per cent) also recorded strong results.

PropTrack Senior Economist Eleanor Creagh.

In Darwin, property prices dropped 0.12 per cent in November, while annually prices are down 1.75 per cent.

The median value of a home in Darwin is the cheapest of the capital cities at $486,000 and it is still 2.47 per cent away from hitting a new peak.

Ms Creagh said prices in the combined capital cities had outperformed regional markets in 2023.

Although prices in both markets reached fresh peaks in November, capital cities saw stronger growth (0.26 per cent) than regional markets (0.12 per cent).

“Looking ahead, price growth is expected to continue as the positive tailwinds for housing demand and a slowdown in the completion of new homes counter the sharp deterioration in affordability and slowing economy,” Ms Creagh said.

“However, prices are likely to lift at a slower pace than they have across 2023.”

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Kylie Dulhunty

Kylie Dulhunty is the Editor at Elite Agent.