Australia's home prices surge in 2023's spring selling season
Adelaide is the best performing market for August 2023, followed by Sydney and Perth. Image: Canva.
  • Home prices in Australia have risen 0.28%, with Sydney leading the pack.
  • Capital cities outpace regions; Adelaide excels, Sydney rebounds strongly.
  • Strong demand, limited listings sustain upwards pressure on home prices.

Spring has sprung, and so have house prices, according to PropTrack’s latest Home Price Index. Home prices rose 0.28% in August, with the year-on-year figure coming in at 2.64%; prices are now 3.51% higher so far this year.

Spring usually sees activity in the real estate market ramp up, as buyers often hold off making purchases during winter.

Home prices have all but reversed 2022 fall

Capital cities did the heavy lifting, with a monthly growth of 0.35%, while regional Australia recorded more subdued levels of growth at 0.09%. Similarly, the capitals recorded strong annual growth, up 3.37%, while the regions recorded less than a per cent of growth.

PropTrack Home Price Index August 2023

Region Monthly growth (%) – All dwellings Annual growth (%) – All dwellings Median value ($) – All dwellings Change since peak (%) – All dwellings Peak month – All dwellings
National 0.28 2.64 751,000 -0.75 Mar 2022
Capital Cities 0.35 3.37 812,000 -0.78 Mar 2022
Regional Areas 0.09 0.87 618,000 -1.16 Apr 2022
Sydney 0.47 5 1,056,000 -1.29 Feb 2022
Rest of NSW 0.14 -0.35 709,000 -2.95 Apr 2022
Melbourne 0.15 -0.53 804,000 -4.57 Mar 2022
Rest of Vic. -0.08 -2.16 590,000 -4.31 Apr 2022
Brisbane 0.27 4.19 752,000 0 Aug 2023
Rest of Qld 0.18 4.43 611,000 0 Aug 2023
Adelaide 0.64 7.41 679,000 0 Aug 2023
Rest of SA 0.43 10.53 395,000 0 Aug 2023
Perth 0.31 7.57 597,000 0 Aug 2023
Rest of WA -0.62 3.35 466,000 -1.93 May 2023
Hobart 0.27 -3.86 676,000 -6.52 Apr 2022
Rest of Tas. -0.16 -1.25 499,000 -1.42 Jun 2022
Darwin -0.38 -1.44 498,000 -2.35 May 2022
Rest of NT 0.04 1.2 447,000 -0.75 May 2023
ACT 0.14 -2.11 841,000 -5.69 Mar 2022

Source: PropTrack.

Sydney leads the pack in Australia’s home price recovery for the month, with prices rising by 0.47% in August. Indeed, prices in Sydney have now mostly rebounded from the sharp 7.04% fall witnessed from February to November 2022. Having risen for nine months in a row now, Sydney home prices are 6.19% up from November’s lows, and just 1.29% under the February 2022’s peak.

Annual change in home prices

Annual change in home prices
Source: PropTrack.

Except for Darwin, which had a monthly price growth of -0.38%, all capitals saw their prices rise in August. Adelaide had the highest monthly gains, growing by 0.64%, followed by Sydney and Perth, which had monthly gains of 0.47% and 0.31%, respectively.

Adelaide remains among Australia’s best-performing market, recording home prices 7.41% higher than in August 2022. Buyers were attracted by the city’s relative affordability, which allowed for prices to increase further despite multiple interest rate rises. Moreover, a dearth in stock amplified demand, driving prices even further up.

Regional areas falling behind capital cities

Regional areas had slower growth compared to their capital counterparts in 2023. In August, prices in the regional areas grew incrementally by 0.09%, while capital city prices shot upwards by 0.35%. Capital city home prices have jumped by 4.46% from December 2022, almost four times the 1.20% growth of regional areas over the same period.

Whereas capital city markets have reversed most of 2022’s price drops, the regional markets have been experiencing a greater fall from their peak. Nevertheless, regional Queensland and South Australia’s regional markets continue to outpace the other regional markets, having attained new peaks in August 2023.

Elevated demand and limited listings to bump prices up further

“August marked the eighth consecutive month of national home price growth. This is the longest period of consecutive monthly growth since the pandemic boom when prices rose for 23 months straight between May 2020 and March 2022. National home prices have now regained the majority of price falls seen in 2022,” said PropTrack senior economist and report author, Eleanor Creagh.

“For much of this year, stronger housing demand and a limited flow of new listings hitting the market have offset the impact of interest rate rises.

“In Sydney and Melbourne, the flow of new listings is increasing as seller confidence improves. However, buyer demand still far outstrips supply, putting upward pressure on prices.

“Limited choice in Brisbane, Adelaide and Perth, has led to strong buyer competition and solid selling conditions, pushing prices to fresh peaks in August.

“As more new listings come to market over spring, we may see the pace of home price growth start to slow. However, with interest rates stabilised and likely near or at their peak, the confidence in the market is likely to sustain, resulting in more of the country returning to positive annual price growth.”

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