Australia’s national home prices soared to a new record in February, driven by robust buyer demand amidst increasing supply, according to the latest PropTrack report.
February saw Australian home prices climb by 0.45%, reaching a record high. This increase marks the most substantial monthly rise since October, with a 6.15% year-over-year growth.
“The slowdown in home price growth recorded toward the end of 2023 has reversed this year, with prices hitting a new peak in February,” said Eleanor Creagh (pictured above), senior economist at PropTrack. “More homes have hit the market this year, but demand has kept up with that increase.”
Capital cities led the surge in home prices, posting a 0.48% increase to reach new highs, with an impressive 7.06% jump from last year.
Brisbane has emerged as a standout in the national property market, witnessing a 60.7% surge in home values since the pandemic’s start. This growth spurt has elevated Brisbane’s market to match Melbourne's, a significant indicator of Brisbane's booming real estate sector.
While all capitals except Hobart experienced growth, Adelaide, Perth, and Sydney saw the most substantial increases. Adelaide led with a 0.81% rise, followed by Perth at 0.56% and Sydney at 0.55%.
Year to date, capital city prices have exceeded those in regional areas. Nonetheless, regional areas saw a 0.36% increase in February, reaching a new high. Leading the growth were Regional South Australia (+1.09%) and Regional Queensland (+0.77%), with a slight decline in Regional Northern Territory (-0.08%), PropTrack data showed.
Creagh predicted that the positive momentum in housing demand, coupled with a slowdown in new home completions, will continue to drive home prices upward in the coming months. This forecast is buoyed by expectations of falling interest rates, population growth, tight rental markets, and resilient labour conditions.
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