- The peak pace of growth has passed
- House prices have increased about four times faster than units over 2021
- In Sydney median house prices are now double the median unit prices
Median house prices across Australian capital cities have surpassed $1million, widening the chasm between unit and house prices even further according to a new Domain Report.
Although both house and unit prices have soared into new record highs, house prices increased three times faster than units over the past year in the combined capital cities.
Nicola Powell, Domain Chief of Research and Economics, explains that an array of factors are stimulating the ongoing price surges.
“House and unit prices continue to beat records nationally due to lockdown activity rebounds in Sydney, Melbourne and Canberra, high household savings and the ongoing demand from Australians to buy a property,” Dr Powell said.
“Demand continues to outstrip supply across a majority of the cities however rapid price growth and affordability issues are likely to shift demand in 2022.”
Nicola Powell, Domain Chief of Research and Economics
Domain’s December 2021 Quarterly House Price Report suggests that the peak pace of growth has passed as dwelling price growth had lost momentum in the last quarter compared to earlier in the year.
Quarterly change of median house and unit price
Taking a closer look at the cities, all capitals bar Perth and Darwin have hit record high house prices.
New records were set for units in Sydney, Melbourne Brisbane and Adelaide.
In Sydney median house prices are now double the median unit prices.
“The rapid escalation in price is proving to be a significant financial barrier to entry for buyers and upgraders against a backdrop of low wage growth. Housing affordability will continue to weigh on demand throughout 2022,” Dr Powell said, commenting on the price growth in Sydney.
