While all Australian capital cities enjoyed price increases in the June quarter, one city made a surprising leap above the rest.
In a recent report, the Real Estate Institute of Australia (REIA) found that Darwin topped the increases of all the capital cities, recording a record-breaking 19 percent median house price increase.
“The only other increase of this magnitude … was in 2002 when Hobart recorded a quarterly change of 17.2 percent over the December quarter,” said REIA president, David Airey.
The average median house price for a three-bedroom home increased by 5.1 percent over the June quarter, reaching $458,448. It’s a significant leap considering on average house prices have decreased by 0.7 percent over the rest of the year.
In values, only Sydney tops Darwin’s average house prices, at $544,000 and $537,093 respectively. At the other end of the scale, the lowest reported median house prices were Hobart at $336,000 and Adelaide at $359,000.
“Prices have stopped falling and are on the way up due to increased investor activity and revived interest from second and third home buyers who have returned to the market,” Airey said.
“These buyers are selling to first home buyers who have shown a preference for established homes in seven out of 10 sales.”
The increase brings hope for sellers across the country but raises further questions for first home buyers who are finding it harder to get on to the ladder.
Overall, experts point towards a housing bubble, propped up by the last few months of the First Home Owner Grant (FHOG), and a warning that while house prices may be increasing, so too may interest rates in the coming months