In the market for a home? We take a look at what you can expect to pay across Australia’s major cities.
Whether you’re buying your first home, your next home, or looking to invest, keeping up with property values can seem like a huge task. Combined, the total value of homes across the country has now reached $7.2 trillion, although naturally prices vary from city to city – what you pay for a three-bedroom home in Sydney is very different to what you’d pay for a similar property in Hobart.
Property values in Australia are driven by factors such as population growth, job creation, demographics, infrastructure projects, new residential supply, as well as the proximity of amenities such as shops, transport and schools. The most recent data from CoreLogic shows that Melbourne and Canberra have recorded the highest growth in property values in the three months to July 2017, but Sydney recorded the biggest jump over the past five years with values surging more than 75% since 2012.
Here is the city-by-city breakdown.
According to the latest data from CoreLogic for July 2017, the median value of a house in Sydney is $1.235m, which is 12.8% higher than one year ago, and for apartments it’s $810,680 (up 10.3% over the previous year).
A recent study by the Committee for Sydney and PwC found that the inner west suburbs of Sydney were the best positioned for accessing jobs, shopping centres, schools and hospitals. Ashfield topped the rankings, with Sydenham, Tempe and St Peters coming equal second, while Burwood and Croydon ranked equal third. Six of the top 10 suburbs on the list were in the inner west.
Melbourne was recently named the most liveable city in the world by The Economist, for the seventh year in a row. The study analyses factors such as safety, health care, educational resources, infrastructure and the environment to calculate scores for 140 cities.
When it comes to property values, Melbourne recorded the greatest increase in dwelling values of all capital cities over the past year, up 15.93% in July versus the same time last year. The median value for houses was $1.01m, up 17.17% year-on-year, and $554,800 for apartments (up 4.63%).
In July 2017, Brisbane’s median value for houses were $555,370 and $391,120 for apartments. While Brisbane values were up year-on-year, they were down from the previous month. Overall, dwelling values in Brisbane (for both houses and apartments) are now just 22.7% higher than they were a decade ago.
However, according to one of Australia’s leading real estate agents, John McGrath, Founder of McGrath Real Estate, Brisbane is primed for strong growth over the next five to six years. Speaking at a function in Brisbane in July, McGrath said values in Brisbane would grow closer to what buyers pay in Sydney.
Property values in Adelaide have been growing at a sluggish pace, rising 16.7% over the past five years. The latest figures are showing the median value for houses to be $498,600 (just 2.9% higher than a year ago) and apartments $360,820 (up just 0.59% year-on-year).
Adelaide has more than just affordable homes to recommend it for anyone considering a move – including no traffic, and excellent schools and beaches – and this year it ranked equal fifth with Canada’s Calgary on The Economist’s ranking of the most liveable cities in the world.
House values in Perth have declined by 2.49% over the past year, recorded as $575,890 in July 2017, while apartment values rose 2.96% to $466,740. Values for both houses and apartments in Perth are just 0.3% higher now than they were a decade ago, with the city entering a downturn after the end of the mining boom.
However, property experts are predicting the Perth property market to rebound over the next two years, while locals may be buoyed by Perth’s ranking at number seven on The Economist’s most liveable cities list.
House values in Darwin have fallen by 3.56% over the past year to $480,290, while apartment values increased by 4.57% to $387,440. Like Perth, the property market in Darwin has slowed down from its previous heights during the resources boom, with values now 17.1% lower than they were at their historic peak in August 2010.
Australia’s capital is currently enjoying strong growth, with median house values in Canberra recorded at $750,370 in July 2017 (13.15% higher than a year ago) and apartment values at $462,690 (up 9.99%).
Buyers will soon have more choice when it comes to apartments, with almost 80% of all Canberra dwelling approvals in 2016 being for apartments.
Hobart is by far the most affordable capital city in Australia, with house median values currently at $389,460 (up 6.98% over the past year) and apartment median values at $341,460 (up 2.41%).
The Tasmanian capital may be primed for greater growth, as interstate investors enter the market, attracted by the combination of affordable properties and high rental returns. According to recent figures from the Real Estate Institute of Tasmania, about one in every five properties sold is being bought by investors.