Australian dwelling prices have experienced their largest monthly increase since October last year, rising by 0.8 per cent in May, with the middle-valued home in Australia now worth $785,556, according to new data released by CoreLogic.
It also marks the 16th straight month of price increases, as demand for housing remains well above the low levels of supply across the country.
Sydney remains the most expensive capital city with a median home price of $1.15 million — including both standalone houses and apartments — after recording 0.6 per cent growth during May.
However, Brisbane has now become the second-most expensive city for housing in the country, with prices jumping by 1.4 per cent during the month, and taking the median property price to $843,231.
It is the first time since 1997 that Brisbane has recorded the second-highest median dwelling value.
Canberra is now the third-most expensive capital city, followed by Melbourne, Adelaide and Perth.
CoreLogic’s research director Tim Lawless said the difference in the growth rates between the capital cities was due to low levels of supply in the markets that experienced the strongest demand — particularly in the mid-sized capitals.
“To say the housing market has been resilient is an understatement,” Mr Lawless said.
“Housing values are continuing to rise across most areas and housing types, with growth accelerating in some markets.
“The common denominator remains a mismatch between housing supply and housing demand.”
CoreLogic data showed that the available supply of homes for sale remains well below average, and is almost 2 per cent lower than it was 12 months ago.
Comparatively, demonstrated demand for housing is still above average, and is 2.8 per cent higher than a year ago.
“It’s this disconnect between supply and demand that is trumping the downside pressures from interest rates, high inflation and low sentiment,” Mr Lawless said.
“Despite worsening affordability pressures, from both a purchasing and a rental perspective, Australian residents still need to keep a roof over their heads.”
Housing supply and demand will eventually even out, he said, due to slower population growth and a surge in construction.
However, Mr Lawless said that until more housing is built Australians can expect “further upwards pressure” on housing values, and “further erosion in housing affordability”.
Brisbane house prices now higher than Melbourne
Dwelling values in Brisbane first overtook the median value for Melbourne back in January, which CoreLogic attributed to Melbourne having a higher concentration of “relatively cheap” units and apartments.
Four months later, CoreLogic noted that house values in Brisbane are now higher than the median house value in Melbourne.
It’s the first time since June 2008 that Brisbane’s house prices have been more expensive than those in Melbourne.
CoreLogic data shows that Brisbane’s median house value is currently $937,479 — which is $190 more than Melbourne’s median house value.
Brisbane’s median unit value of $615,429 is also higher than Melbourne’s median unit value by $1,130.
The change in values means Brisbane’s property prices have increased by more than five times the pace of those in Melbourne since the COVID-19 pandemic, with CoreLogic figures showing Brisbane’s property values have grown by 59.8 per cent compared to 11.2 per cent in Melbourne.
Prior to the pandemic, CoreLogic said Melbourne’s median dwelling value had premium of about 37 per cent compared to Brisbane.
“The number of properties available for sale in Perth and Adelaide remain more than -40 per cent below the five-year average for this time of the year while Brisbane listings are -34 per cent below average,” Mr Lawless said.
“Inventory levels in these markets remain well below average despite vendor activity lifting relative to this time last year.
“Fresh listings are being absorbed rapidly by market demand, keeping stock levels low and upwards pressure on prices.”
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