by Sanjeev Sah | May 14, 2024 | Market Updates

Australia’s home values reached new highs after 10 price records were shattered in the March quarter, according to Domain.  

These include: 

* Sydney’s house prices crossing the $1.6 million mark for the first time, and Adelaide’s climbing above $900,000 

* Perth’s unit prices reaching a record $425,600, after the city experienced its quickest quarterly growth in five years (8.1%) and highest annual gains in 17 years (17.2%) 

Price growth was slower during the March quarter compared to the previous quarter in Sydney, Melbourne, Brisbane, Adelaide, Perth, and Darwin. For units, Melbourne and Adelaide experienced slower quarterly growth. 

Domain chief of research and economics Dr Nicola Powell said this was due to an increased supply of properties coming to the market. However, prices are expected to continue rising despite the challenges posed by cost-of-living and high interest rates. 

This upward trend is driven by various factors, including a chronic shortage of new homes, strong population growth, high building costs, and a tight rental market, all of which boost housing demand,” she said.   

“The shortage of new housing is likely to persist, as new dwelling approvals have dropped to a nearly 12-year low after trending downward over the past two years. This ongoing scarcity will maintain pressure on our housing supply.”