PRICE MOVEMENTS
The property market continues to heat up with all capital cities now recording year-on-year price increases . While there was speculation that house price growth would slow once more properties became available for sale , this doesn ’ t seem to be the case . Buyer demand remains robust , despite finance costs and the relative difficulties in getting a home loan compared to 18 months ago .
In July , we saw prices decline slightly but this was more than reversed in August . The July fall was likely due in part to the surprise interest rate rise in June , as well as the first increase in properties available for sale . In August , the markets that saw the biggest price falls last year saw the biggest increases last month . Sydney topped the list with a 0.9 per cent increase for the month . On an annual basis , Adelaide and Perth are leading the way , recording well over six per cent price growth over the past 12 months . Melbourne and Hobart are the slowest growth capital cities .
Unit price growth is also strong with all capital cities now recording year-on-year unit price growth . Very strong population growth and building challenges have resulted in Brisbane recording the most growth . Brisbane units continue to see a faster rate of growth than houses .
While surprising that demand for housing is so high in such a high interest rate environment , it reflects strong population growth and a reduction in new home construction . Continuing strong rental growth conditions are leading more people to consider buying their own homes , while a lack of new home builds are pushing more into the established home market . With interest rates at or close to peak , it ’ s likely greater certainty about where rates will settle will also be a factor .
Cover image : 22 Nelson St , Annandale Matthew Carvalho and George Pavlidis Ray White - Erskineville | Alexandria | Glebe | Surry Hills
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