Nationwide house costs hit new peak in February

Australia’s nationwide house costs soared to a brand new document in February, pushed by strong purchaser demand amidst growing provide, in keeping with the most recent PropTrack report.

February noticed Australian house costs climb by 0.45%, reaching a document excessive. This enhance marks essentially the most substantial month-to-month rise since October, with a 6.15% year-over-year development.

“The slowdown in house value development recorded towards the tip of 2023 has reversed this yr, with costs hitting a brand new peak in February,” mentioned Eleanor Creagh (pictured above), senior economist at PropTrack. “Extra properties have hit the market this yr, however demand has stored up with that enhance.”

Capital cities and Brisbane’s market growth

Capital cities led the surge in house costs, posting a 0.48% enhance to succeed in new highs, with a powerful 7.06% leap from final yr.

Brisbane has emerged as a standout within the nationwide property market, witnessing a 60.7% surge in house values for the reason that pandemic’s begin. This development spurt has elevated Brisbane’s market to match Melbourne’s, a major indicator of Brisbane’s booming actual property sector.

Regional highlights

Whereas all capitals besides Hobart skilled development, Adelaide, Perth, and Sydney noticed essentially the most substantial will increase. Adelaide led with a 0.81% rise, adopted by Perth at 0.56% and Sydney at 0.55%.

Yr thus far, capital metropolis costs have exceeded these in regional areas. Nonetheless, regional areas noticed a 0.36% enhance in February, reaching a brand new excessive. Main the expansion had been Regional South Australia (+1.09%) and Regional Queensland (+0.77%), with a slight decline in Regional Northern Territory (-0.08%), PropTrack knowledge confirmed.

Wanting ahead

Creagh predicted that the optimistic momentum in housing demand, coupled with a slowdown in new house completions, will proceed to drive house costs upward within the coming months. This forecast is buoyed by expectations of falling rates of interest, inhabitants development, tight rental markets, and resilient labour situations.

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