Highlights
- The weighted average median house price for the eight capital cities rose to $873,911, except in Canberra
- The median rent increased in all capital cities, except in Melbourne where it remained steady
- Darwin had the highest annual rental growth at 17.3 per cent
The latest data from the Real Estate Institute of Australia (REIA) showed the weighted average capital city median price for all Australian capital cities increased by 6.8 per cent for houses and by 2.7 per cent for other dwellings over the March quarter.
The REIA said it was the highest increase rate in a quarter in a decade.
REIA president Adrian Kelly said Sydney's median house price continues to be the highest amongst the capital cities at $1.3 million, almost 50 per cent higher than the national average.
"Over the March quarter, the weighted average median house price for the eight capital cities rose to $873,911 with all cities increasing except Canberra," Mr Kelly said.
"At $500,000, Perth has the lowest median house price across Australian capital cities, 42.8 per cent lower than the national average."
Western Sydney-based real estate agent Naveen Kumar said prices in Sydney had always been higher than in other cities due to the state's strong economy.
REIA president Adrian Kelly said Sydney's median house price continues to be the highest amongst the capital cities at $1.3 million. Source: Getty
"Professionals and first home buyers who saved up money during the pandemic are now buying bigger houses away from the CBD. They know they can work from home and don't have to stay closer to work," Mr Kumar told SBS Hindi.
"This has resulted in a decline in demand for apartments. The other reason behind this steep increase in house prices is low-interest rates. A recent report suggested that about 150 suburbs in Sydney now command at least one million in house prices," he said.
Mr Kumar believes house prices will not come down until interest rates are hiked.
REIA said the median rent for a three-bedroom house increased in all capital cities over the March quarter to $452.50 per week.
REIA said the median rent for a three-bedroom house increased in all capital cities over the March quarter to $452.50 per week. Source: AAP
"Over the past 12 months, the median rent increased in all capital cities except Melbourne, where it remained steady," Mr Kelly said.
"Darwin had the highest annual growth at 17.3 per cent and now has the second-highest rent at $538.50 a week, with Canberra the highest at $570 per week," he added.
REIA said the national capital city vacancy rate is at 3.3 per cent and attributed it to Melbourne's rate of 6.1 per cent.
