australian house prices soar again in october 2023
Australian house prices soar again across October, with new peaks hit for four cities. Image: Canva.
  • Home prices across the nation rose 0.36% in October.
  • Prices have risen 4.93% so far this year.
  • All capitals, except Darwin, recorded October price rises.

Australian house prices have risen again, with the latest PropTrack Home Price Index (HPI) finding home prices in Australia rose 0.36% month on month to peak levels, and have risen 4.93% so far this year.

New peaks for home prices were recorded across Sydney, Brisbane, Adelaide, and Perth, with regional Australia also hitting the milestone.

The data also showed prices for the combined capital cities set a record high in October.

“National home prices moved higher in October, reaching new peak levels,” said PropTrack senior economist and report author, Eleanor Creagh.

“Although the volume of new listings hitting the market has risen over the spring selling season, the demand for housing has remained strong, fuelling further home price growth and reflecting the sustained improvement in conditions.”

She noted that the three factors driving demand, a rebound in net overseas migration, tight rental markets, and limited housing, have offset the impacts of substantial rate rises and the slowing economy.

“At the same time, dwelling approvals have declined, hitting decade lows earlier this year. The sharp rise in construction costs, compounded by costly delays arising from labour and materials shortages, has slowed the completion of new homes,” Creagh added.

“Despite a weaker outlook for the economy, population growth is rebounding strongly and this looks set to continue. Interest rates may rise further, but they are likely close to, if not at, their peak. Together with a shortage of new home builds and challenging conditions in the rental market, home prices are expected to rise further.”

PropTrack Home Price Index for October 2023

All dwellings Monthly Growth Annual Growth Change from Peak  Change since March 2020 Median Value
Sydney 0.37% 7.51% At peak 31.7%  $1,070,000
Melbourne 0.28% 0.64% -3.90% 16.6%  $815,000
Brisbane 0.52% 7.36% At peak 53.2%  $773,000
Adelaide 0.47% 8.77% At peak 55.1%  $697,000
Perth 0.52% 10.90% At peak 42.2%  $604,000
Hobart 0.51% -4.08% -6.71% 37.8%  $673,000
Darwin -0.11% -1.35% -2.24% 25.9%  $493,000
ACT 0.11% -0.18% -5.21% 36.2%  $848,000
Capital cities 0.37% 5.55% At peak 31.2%  $824,000
Rest of NSW 0.33% 1.25% -1.68% 49.2%  $712,000
Rest of Vic -0.01% -2.58% -4.37% 39.9%  $582,000
Rest of Qld 0.61% 6.51% At peak 57.8%  $622,000
Rest of SA -0.20% 9.00% -0.30% 53.3%  $396,000
Rest of WA 0.45% 5.42% At peak 43.3%  $463,000
Rest of Tas 0.14% -0.40% -1.21% 52.1%  $498,000
Rest of NT -0.04% -1.01% -1.65% 12.2%  $429,000
Regional areas 0.32% 2.06% At peak 49.3%  $618,000
National 0.36% 4.54% At peak 35.9%  $759,000

Source: PropTrack.

Capital city breakdown

Home prices across four of the nation’s capitals have now risen above their peaks.

Sydney has regained all of the losses seen across 2022, and has since risen for 11 consecutive months. Since the trough in November 2022, prices are up 7.71%, and are up 7.62% year to date. This is now 0.32% above the prior peak recorded in Feburary 2022.

Brisbane has likewise seen last year’s losses disappear, with prices rising 7.36% above last year’s level, and up 7.73% year to date.

Perth real estate prices have stood out, with prices rising for the sixteenth consecutive month to a new peak. Perth house prices are up 10.06% year to date.

The Perth property market is largely being driven by continued strong demand and tight supply.

Adelaide was the final capital city market to hit a fresh peak, with October seeing a 0.47% month on month rise; prices are up 7.91% year to date.

A weaker performance was seen across Darwin, Hobart, Melbourne, and the ACT, with one city recording a price dip.

Darwin property prices fell 0.11% in October, and remained below the May 2022 peak. The PropTrack report noted that the northern capital has not seen a recovery in prices in 2023, but it also did not see a large downturn in 2022.

While Melbourne property prices rose 0.28% in October, and are above last year’s prices, the Victorian capital remains 3.90% below the March 2022 peak.

Hobart was the weakest performing property market, which recorded a -4.08% change in annual price and a -6.71% change from peak. The report noted the Tasmanian capital recorded the largest falls of any market. A caveat was that the city had previously seen years of outperformance and growth throughout the pandemic.

Finally, Canberran house prices rose 0.11% in October, but remained 5.21% below the March 2022 peak.

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