Capital metropolis residence costs lower for the primary time in over a yr

Nationwide residence costs held regular in December as the expansion in regional areas made up for the drops seen in capital cities, a report by PropTrack discovered.

In its newest House Worth Index Report, PropTrack knowledge revealed that nationwide residence costs grew by 5.52% in 2023. It additionally discovered that the mixed capital metropolis costs noticed a lower by 0.09% in December after peaking in November, which marked the primary time residence costs had declined in 2023.

“A number of elements contributed to the slowdown in residence costs during the last quarter of 2023,” stated Anne Flaherty, an economist at PropTrack, within the report.

“There was a further rate of interest rise in addition to a rise within the provide of properties listed on the market, which offered consumers extra selection and helped to alleviate competitors.”

House costs in December

All through December, Sydney noticed costs fall by 0.08% with the median residence worth being $1,062,000. This was adopted by Melbourne, Hobart, and Canberra reducing by 0.55%, 0.41%, and 0.66% respectively. In distinction, Perth noticed a 0.69% enhance whereas Adelaide had a 0.59% enhance, displaying its continued sturdy progress. Brisbane and Darwin additionally noticed a rise in costs with an uptick of 0.27% and 0.1%, respectively.

In the meantime, regional areas noticed the next progress in worth over the past month of the yr, with the mixed regional areas seeing a month-to-month progress amounting to 0.23%. Regional residence costs rose by 3.2% over 2023, reaching a brand new peak in December with the median worth being $625,000.

Nonetheless, Flaherty famous that regardless of regional areas seeing greater progress in December, mixed capital metropolis areas had been nonetheless the clear outperformers in 2023. Costs had been up by 6.44% over the course of the yr, with a median worth amounting to $824,000.

Regional Queensland and South Australia had been the important thing drivers of progress, with 0.51% and 0.5% will increase over the month, respectively. This marked new peaks for the 2 areas in December, with their median residence values sitting at $634,000 and $412,000, respectively.

Flaherty famous that the important thing contributor to the rise in costs within the markets of Perth and Brisbane was housing provide because it was nonetheless total comparatively constrained regardless of the rise within the variety of properties listed on the market within the latest months.

“Regardless of the quiet down in capital metropolis costs seen over December, costs in 2024 will likely be supported by inhabitants progress and what seems prone to be a extra secure rate of interest surroundings,” Flaherty stated.