Australian housing market shows mixed growth as median prices climb

The national median house price rose to $1,050,370 in the September quarter, marking a 6.2 per cent increase over the past year, according to new data from the Real Estate Institute of Australia (REIA).

House prices recorded a modest 0.2 per cent increase during the quarter, with varying performance across capital cities.

“Sydney, Melbourne, Adelaide, and Perth experienced increases, ranging from 0.1% in Melbourne to 0.9% in Perth,” REIA President Leanne Pilkington said.

Sydney maintained its position as Australia’s most expensive housing market, with a median house price of $1,654,668.

The report revealed Darwin remained the most affordable capital city, with a median house price of $561,000.

Several capital cities experienced price declines, with Canberra recording the largest decrease of 2.7 per cent.

The apartment and unit market showed stronger quarterly growth of 0.9 per cent, reaching a national median of $686,459.

Perth led the apartment market with a 4.1 per cent increase, while Canberra experienced the steepest decline of 5.5 per cent.

Rental markets continued to tighten, with three-bedroom house rents rising 2.0 per cent during the quarter to reach $623 per week nationally.

Sydney recorded the highest quarterly rental growth of 4.3 per cent for houses.

The national vacancy rate edged up slightly to 1.7 per cent, with significant variations between cities ranging from 0.7 per cent in Adelaide to 4.2 per cent in Darwin.

Investment lending grew by 1.9 per cent in the September quarter, while owner-occupier lending declined by 0.6 per cent.

“We’re expecting a slow down, particularly in Sydney where clearance rates have started to drop,” Ms Pilkington said.