Sydney and Melbourne lead Australia in monthly price growth

Price growth in Australia’s real estate market has continued through February, with notable performance in cities across the country. Perth has emerged as a strong player, presenting a remarkable 17.5% growth over the last year, securing its position as the market leader in terms of annual growth. Despite this, Sydney and Melbourne have outpaced other areas in monthly price growth, each recording an increase of 1.1%.

Nerida Conisbee, the Chief Economist at Ray White Group, highlighted an optimistic trend in both Sydney and Melbourne. “Sydney has taken a bit longer to recover compared to some of the smaller cities, it is off to a strong start,” Conisbee stated. This recovery has been quantified by a 3.1% rise in prices since the beginning of the year, making it the highest among capital cities for the specified period. Also, Regional NSW has exhibited resilience, with prices moving up by 1% over the month.

Richmond-Tweed, an area known for holiday homes and lifestyle properties, has shown significant recovery, with prices now surpassing the peaks observed during the COVID-19 era.

The unit market has also seen vibrant activity, particularly in Adelaide, Brisbane, and Perth where a shortage of stock has led to price increases of over 10% for the year. Melbourne, in particular, has excelled with the strongest unit price growth observed in February.

Looking forward, the outlook remains positive. Conisbee suggested that with potential rate cuts and the ongoing shortfall in housing supply, “it looks like we are on track for stronger price growth in 2024 than we were in 2023.” The market remains favourable for sellers, though it is worth noting that stock availability is on the rise, offering some optimism for prospective buyers looking to enter the market.