Hobart houses grow 17.3% as Darwin units slump 14.0%

Hobart houses grow 17.3% as Darwin units slump 14.0%

Australia’s eight capital cities have wildly different house and unit markets, according to new quarterly price stats from Domain.

The new report, which covers the December quarter, shows that Australia’s median price has now climbed to $813,024 for houses and $557,794 for units.

Other key facts include:

  • Sydney has the most expensive house and unit prices
  • Hobart has the cheapest house prices
  • Adelaide has the cheapest unit prices
  • Hobart has the best quarterly house price growth, best annual house price growth and best annual unit price growth
  • Darwin has the worst quarterly house price growth, worst annual house price growth and worst annual unit price growth – but the best quarterly unit price growth
  • Brisbane has the worst unit price growth over the quarter

Here is a city-by-city breakdown of the house and unit markets:

Sydney

Median house price = $1,179,519

  • Quarterly change = +0.5%
  • Annual change = +4.0%

Median unit price = $736,879

  • Quarterly change = +0.4%
  • Annual change = +1.7%

Key stat

  • Sydney’s median house price is lower than six months ago

Domain commentary

“Sydney’s double-digit growth phase appears to be in the rear-view mirror, and with no further rate cuts in sight, the market may continue to moderate in 2018. Demand is likely to weaken, as the heightened investor activity that Sydney has experienced is unlikely to be significantly offset by the rising number of first home buyers.”

Melbourne

Median house price = $903,859

  • Quarterly change = +3.2%
  • Annual change = +11.3%

Median unit price = $506,079

  • Quarterly change = +2.8%
  • Annual change = +8.0%

Key stat

  • Melbourne units recorded their strongest annual price growth in seven years

Domain commentary

“Similar to Sydney, first home buyer numbers in Melbourne have risen, recording its highest level of activity since 2009. This can be attributed largely to the Victorian government’s entry-level buyer incentives. In the coming months we are likely to continue to see a higher demand for entry-level homes, helping to drive price growth at the lower end of the market, as well as support regional price movements throughout the state.”

Brisbane

Median house price = $903,859

  • Quarterly change = +3.2%
  • Annual change = +11.3%

Median unit price = $506,079

  • Quarterly change = +2.8%
  • Annual change = +8.0%

Key stat

  • Brisbane unit prices are at a four-year low

Domain commentary

“The surge of new apartments in Brisbane remains ahead of the demand, and although this continues to impact unit prices, population increases and a slowdown in new development starts and completions may work together to help balance the market.”

Perth

Median house price = $557,567

  • Quarterly change = +0.5%
  • Annual change = -2.5%

Median unit price = $369,402

  • Quarterly change = +1.0%
  • Annual change = -1.7%

Key stat

  • Negative price growth for Perth units has improved to its lowest level in almost three years

Domain commentary

“Perth’s housing market outlook for 2018 depends largely on whether the city’s economy and population track upwards throughout the year.”

Adelaide

Median house price = $522,815

  • Quarterly change = +0.9%
  • Annual change = +3.5%

Median unit price = $315,794

  • Quarterly change = -1.6%
  • Annual change = +2.0%

Key stat

  • Adelaide has the lowest median unit price of all the capitals

Domain commentary

“Adelaide has avoided the extreme price surges impacting Australia’s east coast markets. Its steady pace of growth and diverse coastal lifestyle makes it a reliable location for buyers heading into 2018.”

Hobart

Median house price = $443,521

  • Quarterly change = +10.0%
  • Annual change = +17.3%

Median unit price = $318,467

  • Quarterly change = -0.8%
  • Annual change = +14.2%

Key stat

  • Hobart house prices are at record levels

Domain commentary

“It has been over a decade since Hobart experienced such a surge in house prices over a quarter, and the capital city’s results over the December quarter highlight the growing demand for homes in the Tasmanian capital.”

Canberra

Median house price = $753,516

  • Quarterly change = +5.0%
  • Annual change = +8.4%

Median unit price = $426,124

  • Quarterly change = +0.1%
  • Annual change = +0.4%

Key stat

  • Canberra house prices have reached record highs

Domain commentary

“Canberra house prices have been tracking upward for 15 consecutive months, delivering the second-best performance this quarter after Hobart. Renewed buyer and seller confidence has provided the nation’s capital with a substantial price boost that will likely continue throughout 2018.”

Darwin

Median house price = $565,696

  • Quarterly change = -2.6%
  • Annual change = -7.4%

Median unit price = $395,279

  • Quarterly change = +9.3%
  • Annual change = -14.0%

Key stat

  • Darwin house prices are at an eight-year low

Domain commentary

“Darwin was the only capital city to record a median house price decline over the quarter and over the year, and a strengthening in the local market depends primarily on the state of the economy as we head into 2018.”

Australia

Median house price = $813,024

  • Quarterly change = +1.4%
  • Annual change = +5.0%

Median unit price = $557,794

  • Quarterly change = +0.3%
  • Annual change = +2.3%

Key stat

  • National annual house price growth is at 15-month lows

Domain commentary

“A varied level of price growth across all capital cities was reflected in both the national median house and unit prices this quarter. Overall, prices rose marginally in the three months to December but the slower pace has weighed down the annual growth to its lowest rate since September 2016.”

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