- Home values lifted 0.22% MoM, with the national median now $761,000.
- The rise in prices come despite the November rate rise.
- The pace of price growth is slowing.
House prices in Australia have soared again, but it’s not all bad news for those trying to get a foot in the door of their first home as the pace of growth slows.
The latest PropTrack Home Price Index (HPI) found home prices across Australia rose 0.22% in November to fresh new highs. Year to date, prices have risen 5.53% and are 1.29% above the previous peak seen in March last year.
While a rise may leave prospective homebuyers wincing, there was some good news:
“National home price growth slowed in November, with the spring selling surge increasing choice for buyers,” said PropTrack senior economist and report author, Eleanor Creagh.
She noted the slowing was due to more stock coming onto the property market.
Across the capital cities, monthly growth came in at 0.26%, with annual growth at 6.54%. The combined capitals are currently at the peak, with the total change since the onset of the pandemic in March 2020 at 32%.
Combined regional areas recorded milder monthly growth at 0.12% and annual growth of 2.60%. It is also at peak and is up 49.8% since March 2020.
Home prices surge despite cash rate pain
“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,” said Creagh.
“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.”
Supply continues to languish. Creagh notes construction cost rises and labour and material shortages continue to hamper the supply of new housing.
“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.”
Eleanor Creagh, PropTrack
“However, prices are likely to lift at a slower pace than they have across 2023.”
PropTrack Home Price Index November 2023
| Region | Monthly growth (%) – All dwellings | Annual growth (%) – All dwellings | Median value ($) – All dwellings | Change since peak (%) – All dwellings | Peak month – All dwellings | Cumulative growth since pandemic (%) – All dwellings |
| National | 0.22 | 5.42 | 761,000 | 0 | Nov 2023 | 36.5 |
| Capital Cities | 0.26 | 6.54 | 823,000 | 0 | Nov 2023 | 32 |
| Regional Areas | 0.12 | 2.6 | 625,000 | 0 | Nov 2023 | 49.8 |
| Sydney | 0.32 | 8.4 | 1,065,000 | 0 | Nov 2023 | 32.5 |
| Rest of NSW | 0.07 | 1.56 | 715,000 | -1.64 | Apr 2022 | 49.3 |
| Melbourne | 0.04 | 1.39 | 807,000 | -3.71 | Mar 2022 | 16.7 |
| Rest of Vic. | -0.18 | -2.25 | 585,000 | -4.67 | Apr 2022 | 39.1 |
| Brisbane | 0.2 | 8.85 | 775,000 | 0 | Nov 2023 | 54.9 |
| Rest of Qld | 0.35 | 7.36 | 632,000 | 0 | Nov 2023 | 59 |
| Adelaide | 0.34 | 9.74 | 703,000 | 0 | Nov 2023 | 56.7 |
| Rest of SA | 0.84 | 10.04 | 415,000 | 0 | Nov 2023 | 56.3 |
| Perth | 0.74 | 12.76 | 622,000 | 0 | Nov 2023 | 45 |
| Rest of WA | 0.18 | 5.96 | 472,000 | 0 | Nov 2023 | 44.8 |
| Hobart | 0.03 | -2.92 | 656,000 | -6.63 | Mar 2022 | 37.9 |
| Rest of Tas. | 0.08 | 0.74 | 501,000 | -0.8 | Jun 2022 | 52.7 |
| Darwin | -0.12 | -1.75 | 486,000 | -2.74 | May 2022 | 24.9 |
| Rest of NT | 0.03 | -2.21 | 431,000 | -2.42 | Dec 2022 | 13.3 |
| ACT | 0.32 | 0.97 | 846,000 | -4.49 | Mar 2022 | 37.2 |
Source: PropTrack.
The report found that Sydney home prices hit a record high last month, despite slowing in growth. Prices have now risen 8.27% so far this year and are 1% above the previous peak recorded in Feburary 2022.
Darwin was the exception among the capitals, the only one to see a monthly fall in the price index.
Perth was the strongest performer, up 0.74% month on month, followed by Adelaide (+0.34%), Sydney (+0.32%) and Canberra (+0.32%).
The western capital is also forecast to see continued price growth in the near future, with HIA chief economist Tim Reardon recently noting at an economic outlook event that prices were set to rise 30%.
Housing values climb higher than units
Monthly growth for houses across the nation came in at 0.26%, with units only recording 0.03% growth.
Annually, the disparity was slightly less at 5.52% growth for houses and 4.96% for units.
Nationally, the median house value is $822,000, whereas the national median unit value is $635,000.
