Home prices hit record highs across major cities

Continued market resilience

Home prices hit record highs across major cities


By Mina Martin

Home prices in Sydney, Brisbane, Adelaide, and Perth have soared to new records, according to PropTrack’s weekly economic update.

May witnessed significant increases, with Perth leading the growth at almost 1% for the month, marking a 21% rise from May 2023. Brisbane and Adelaide also showed strong performance, with annual increases around 14%.

Supply and demand dynamics

Despite an increase in new listings across major cities, robust demand has swiftly absorbed the additional supply, propelling further price growth.

“The number of homes hitting the market this year has increased significantly in Sydney and Melbourne, with that trend now broadening to Brisbane, Adelaide, and Perth,” said Eleonor Creagh (pictured above), senior economist at PropTrack. “But strong demand is absorbing the uplift, fuelling further price growth.”

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Brisbane’s rising status

The surge in Brisbane's market has elevated its status to the second-most expensive capital, surpassing Melbourne and on par with Canberra. This is attributed to a consistent pattern of growth, with home prices now 18% above the December 2022 lows.

Challenges and resilience

Despite higher borrowing costs and a challenging affordability landscape, home prices have remained resilient.

“Higher-than-expected inflation... [is] prompting most to expect the Reserve Bank of Australia (RBA) to delay rate cuts until 2025,” Creagh said.

Cooling yet confident market

While the pace of home price growth has moderated since the peak of the summer selling season, buyer and seller confidence remains robust. Improved sentiment has led to an uptick in properties listed for auction, with auction activity notably higher in Queensland and South Australia.

Outlook for home prices

Creagh predicted that while the growth pace may slow during the quieter winter months, “home prices are expected to lift further in the months ahead.”

The expectation that interest rates will remain higher for longer continues to influence market dynamics, yet the smaller capital city markets like Perth, Adelaide, and Brisbane are poised to maintain their strong performance.

Click here to read the PropTrack report in full.

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