Home values continue to rise as Sydney median hits $1.5 million
As figures showed a substantial pick-up in the number of new homes being approved for construction, Cotality's measure of dwelling values rose by 0.6 per cent in July to be 1.8 per cent up over the past three months.
In Sydney, the median house value has climbed through the $1.5 million mark, increasing by 0.8 per cent last month to be 3.3 per cent up since the start of the year.
Melbourne's median house value increased by 0.4 per cent to $952,000. Although up 2.8 per cent so far this year, values in Melbourne are still short of the peak hit during the COVID pandemic, when the official cash rate was at 0.1 per cent.
House values in Brisbane ($1.019 million) and Adelaide ($895,726) lifted by 0.7 per cent last month, while they increased by 0.9 per cent in Perth ($869,689) and by 0.6 per cent in Canberra ($984,723).
Loading
Cotality research director Tim Lawless said July was the sixth consecutive month of higher property values, which had started increasing after the Reserve Bank's February interest rate cut.
'At the national level, the pace of growth in housing values is no longer accelerating,' he said.
'Rather, we have seen growth rates holding a little above half a per cent from month to month since May as the opposing influence of low supply, falling interest rates and rising confidence run up against affordability constraints and lingering uncertainty.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sydney Morning Herald
2 hours ago
- Sydney Morning Herald
Australia is trying to build 1.2 million homes, but they're getting stuck
Some 30,000 potential homes have been approved but have not yet started construction, analysis has found, as construction times blow out and building costs remain high. There were a further 219,000 homes under construction in the March quarter, Cotality analysis of ABS figures shows, similar to the levels during the building boom of the 2010s – except that, this time, homes are taking longer to finish. Cotality head of research Eliza Owen warned that homes were being approved and then getting stuck. Building costs surged after the COVID-19 lockdowns and have not returned to pre-pandemic levels, while the average number of quarters taken to complete a new unit has risen from about six a decade ago to more than nine. Owen highlighted the federal government's target of delivering 1.2 million new homes over five years. The closest Australia came to delivering this many homes in a five-year period was in the five years to December 2019, when just over a million homes were completed. Owen noted that this was in a different context: the cash rate then was lower, units made up a larger share of approvals and investors – including foreign investors – were a larger share of demand. She added that this did not necessarily lead to good housing outcomes. Despite the supply, home ownership rates fell from 67.2 per cent in June 2014 to 66.2 per cent in June 2020. Some of these were new apartments in which defects were so rife that some new dwellings could not be lived in.
The Age
2 hours ago
- The Age
Australia is trying to build 1.2 million homes, but they're getting stuck
Some 30,000 potential homes have been approved but have not yet started construction, analysis has found, as construction times blow out and building costs remain high. There were a further 219,000 homes under construction in the March quarter, Cotality analysis of ABS figures shows, similar to the levels during the building boom of the 2010s – except that, this time, homes are taking longer to finish. Cotality head of research Eliza Owen warned that homes were being approved and then getting stuck. Building costs surged after the COVID-19 lockdowns and have not returned to pre-pandemic levels, while the average number of quarters taken to complete a new unit has risen from about six a decade ago to more than nine. Owen highlighted the federal government's target of delivering 1.2 million new homes over five years. The closest Australia came to delivering this many homes in a five-year period was in the five years to December 2019, when just over a million homes were completed. Owen noted that this was in a different context: the cash rate then was lower, units made up a larger share of approvals and investors – including foreign investors – were a larger share of demand. She added that this did not necessarily lead to good housing outcomes. Despite the supply, home ownership rates fell from 67.2 per cent in June 2014 to 66.2 per cent in June 2020. Some of these were new apartments in which defects were so rife that some new dwellings could not be lived in.
AU Financial Review
6 hours ago
- AU Financial Review
WFH culture in Victoria ‘took hold from COVID lockdowns'
Victoria's long periods of COVID lockdowns created a culture of working from home that is not as entrenched in other parts of the country, Western Australia's premier said yesterday as other state leaders distanced themselves from Jacinta Allan's plans to legislate a right to hybrid work. Employers have criticised the Allan government's promise to enshrine remote working arrangements into Victorian law as productivity-sapping and anti-business, and all other mainland states on Tuesday said they had no plans to follow suit.
