Most of Australia’s housing markets started out strong in the first quarter of 2017, according to Domain.
The March quarter Domain State of the Market Report shows the national median housing price grew by 2.2 per cent over the quarter, a 10.2 per cent annual increase to $801,204, which is a record high.
The national median unit price recorded an increase over the March quarter – 1.2 per cent over the quarter and 5.4 per cent over the year to $558,824.
“National house price growth has been solid this quarter, but with a number of unit price falls in capital city markets, the March result for unit prices growth is the lowest since the December quarter 2015,” Domain chief economist Andrew Wilson said.
“While each Australian state and regional market is unique, the national house and unit price growth help give an overall picture of the market, despite a consistent ‘two-speed economy’ in many areas.”
Melbourne, Sydney, Adelaide, Hobart, Canberra and Darwin recorded rises in housing prices, with declines in Brisbane and Perth.
“Growth levels in capital city housing markets have varied according to local supply and demand, but the Australian property market has largely gotten off to a strong start in 2017,” Mr Wilson said.
“Steadying interest rates could moderate house price growth over the coming year. Still, the market conditions remain an attractive proposition for investors. With healthy yields and low deposit rates, investor activity looks likely to continue throughout the year.”
Unit prices grew in Sydney, Melbourne and Hobart, with Adelaide holding steady. The other capital cities recorded declines.
In regional Australia, areas such as Tweed and Wollongong, in NSW, saw record annual price growth between 13 to 20 per cent. These and other regional areas are expected to see further growth due to the demand in capital cities.
“Regional markets are also seeing growth as more Australians across the board consider the affordability and lifestyle advantages of moving outside the capital centres,” Mr Wilson said.