Melbourne leads property market turnaround


After two years of negative news and big price falls, Australia’s property market outlook is finally improving. Three capital cities recorded average price rises in the three months to 30 June 2019 according to Domain’s House Price Report for June, released today.

Nationally, average house prices slipped 0.4 per cent during the June quarter, a big improvement from the drop of 2.2 per cent in the first three months of 2019.

In Melbourne, Hobart and Canberra the outlook is even rosier with average prices rebounding and growing over the last three months.

Sydney property price outlook

Sydney’s median house price is now $1,032,338 and Sydney’s median unit price is $688,652, according to Domain. Over the last 12 months, Sydney home prices have lost 9.1 per cent. Over the last three months, Sydney average house prices have declined 0.4 per cent and Sydney unit prices have also lost 0.4 per cent, a much smaller fall than in previous quarters.

Sydney’s median house price is now 14 per cent below the peak of the market in mid-2017. Slowing price falls and growing auction clearance and attendance rates point to modest price rises in the coming months, according to Domain.

Melbourne property price outlook

Melbourne’s median house price is now $818,237 and Melbourne’s median unit price is $501,009.

Over the last 12 months, Melbourne house prices have lost 7.7 per cent. Over the last three months, median Melbourne house prices have risen 0.3 per cent and median unit prices have climbed 2.0 per cent.

Auction clearance rates are improving, particularly in Melbourne’s more expensive areas, indicating a rebounding market, says Domain.

Brisbane property price outlook

Brisbane’s median house price is now $559,167 and Brisbane’s median unit price is $368,382. Over the last 12 months, Brisbane house prices have lost 1.8 per cent. Over the last three months, median Brisbane house prices have lost 1.4 per cent and median unit prices have lost 3.1 per cent. Brisbane house prices have largely held their own since the peak of the market in Queensland in mid-2018, losing just 2 per cent. Unit prices have fallen 11 per cent. Population growth has shielded the Brisbane property market from big losses. Fewer apartment completions in 2019 and 2020 is expected to support prices going forward.

Adelaide property price outlook

Adelaide’s median house price is now $540,473 (down 0.1 per cent in last three months) and Adelaide’s median unit price is now $310,642 (down 0.2 per cent).

Over the last 12 months, Adelaide house prices have lost 1.4 per cent but prices averaged 4.0 per cent growth over the previous four years.

Adelaide prices are likely to rise modestly over the next 12 months on the back of increased buyer interest and interest rate cuts.

Perth property price outlook

Perth’s median house price is now $528,186 (down 2.0 per cent over three months) and Perth’s median unit price is now $342,930 (down 1.6 per cent).

Over the last 12 months, Perth’s median house price has lost 5.4 per cent in the last year and 14 per cent since the peak of the market in 2014. Perth could be set for a rebound in property prices on the back of falling unemployment and higher population growth.

Hobart property price outlook

Hobart’s median house price is now $474,423 (up 0.7 per cent in 3 months) and Hobart’s median unit price is $356,751 (down 6.4 per cent). Over the last 12 months, Hobart house prices have lost 3.9 per cent. Hobart house prices are likely to continue growing on the back of strong population growth and increased investor activity.

Canberra property price outlook

Canberra’s median house price is now $741,947 (up 1.5 per cent) and Canberra’s median unit price is now $448,737 (down 1.4 per cent). Over the last 12 months, Canberra house prices have lost just 0.1 per cent. Canberra prices are expected to hold up over the next year thanks to population growth and low unemployment.

Darwin property price outlook

Darwin’s median house price is now $502,521 (down 2.3 per cent over last three months) and Darwin’s median unit price is now $298,438 (down 4.8 per cent). Over the last 12 months, Darwin house prices have lost 2.9 per cent. Darwin’s median unit price has fallen almost 40 per cent since 2016. Darwin prices could fall further in 2019.

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