3 . Price growth to continue
The price surge we are experiencing is being driven by a lot of things . Very low interest rates , freer lending and high household savings rates are obvious drivers . However high levels of confidence from booming economic growth , a large number of incentives available , particularly for first home buyers , and a general desire for bigger homes and more space have also contributed .
At a more localised level , particularly strong mining conditions have led to strong conditions for Darwin and Perth . While government employment growth has led to particularly strong conditions for Canberra . Regional New South Wales , which tops the list for growth and which now has almost the same median house price as Brisbane , has had a combination of factors that has contributed to growth - lifestyle shifts due to COVID , strong mining conditions and a rebounding agricultural sector .
The city that is seeing the slowest growth is , for now , Melbourne with the rolling lockdowns having some impact on buyer confidence .
While growth is particularly strong and we can see that buyer activity remains strong , conditions are likely to stabilise over coming months . Already we have seen bidding activity slightly reduce over the start of winter and listing volumes continue to rise . Adding to this are some changes to bank behaviour . Despite no move by APRA to reign in lending , some banks are starting to increase stress testing for potential buyers .
25.0 %
CAPTIAL CITY PRICE GROWTH 12 months to - May 2021
20.0 %
15.0 %
10.0 %
5.0 %
0.0 % Darwin Hobart Canberra Adelaide Sydney Brisbane Capital City Perth Melbourne
HOUSE UNIT Source : Corelogic , Ray White
25.0 %
REGIONAL AUSTRALIA PRICE GROWTH 12 months to -May 2021
20.0 %
15.0 %
10.0 %
5.0 %
0.0 %
-5 %
Regional NSW Regional Tas . Regional Qld Regional SA Regional Vic . Regional NT Regional WA
HOUSE UNIT
Source : Corelogic , Ray White
8