Sydney home prices grew 0.6% in June, with most capital cities across the country edging higher during the month.
New PropTrack data showed Australian home prices jumped again in June, rising 0.3% month-on-month. Across the capitals, prices were now higher than the same time last year.
Hobart and Darwin were the only capitals to see prices decline in June, with Hobart continuing its period of underperformance after strong growth for the previous few years.
“The 2023 house price recovery continued in June, despite the Reserve Bank lifting the cash rate for the 12th time since May last year,” PropTrack Economist Angus Moore said.
“Interest rates will continue to be a headwind for prices, but, unlike in 2022, the peak of interest rates is likely close. Higher interest rates are being offset by a limited flow of new properties hitting the market, as well as strong fundamentals for housing demand.
“While the total number of properties listed on realestate.com.au has picked up compared to a year ago, the flow of new properties hitting the market remains subdued, which is creating a more competitive environment for properties coming to market. With auction clearance rates strong, and fewer properties hitting the market during winter, price growth is likely to continue in the near term, despite the potential for further interest rate increases.”
Sydney home prices continued their recovery in June after leading the downturn in 2022. Sydney home prices have now increased for seven straight months, with a 0.6% rise in June. That meant that home prices were now up 4.5% from their trough in November last year and were just 3% below their February 2022 peak.
Home prices in Melbourne increased 0.2% in June, bringing them up 0.8% from their low in January this year. While Melbourne has not seen as sharp a recovery in prices this year as Sydney has, it also did not see as large a decline in 2022. Even so, prices in Melbourne were still 5.2% lower than their peak in March 2022.
Brisbane recorded home price growth of 0.1% in June – a slower pace than in recent months. Even so, Brisbane prices were recovering with six consecutive months of growth. This brought prices up 2.9% since December.
Adelaide recorded further price growth in June and continued to be one of the strongest-performing markets in Australia, alongside Perth. Unlike most other capitals, Adelaide did not see much of a downturn in prices in 2022. As a result, prices were up 5.3% compared to a year ago.
Perth’s home prices increased further in June, up 0.3% month-on-month. Unlike most other capitals, Perth largely avoided a downturn in prices in 2022. As a result, prices were now 5.7% higher than a year ago. In part, this is because there is very little choice for buyers in Perth: the total number of properties listed for sale in Perth is near record lows.
Darwin prices declined slightly in June. Unlike many other capitals, Darwin has not seen a recovery in prices in 2023, but it also did not see as large a downturn in 2022. As a result, prices were only 1.5% lower than a year ago.
Prices in Hobart fell again in June, marking 15 consecutive months of declines. Relative to its peak, Hobart has seen the largest decline in prices of any city. Even so, this downturn comes after very strong growth during the pandemic, meaning prices were still up more than 38% compared to February 2020.
Home prices increased a modest 0.1% month-on-month in Canberra in June, marking the fourth straight rise. While that has helped offset some of the price declines in 2022, prices were still down 5.5% from peak.
As has been the case for much of 2023, regional areas recorded slower growth than the capital cities. Prices in capitals were up 3.0% since December, compared to 0.8% for regional areas. That said, prices regionally held up better in 2022, meaning prices have not fallen as far as in capitals.