Australian housing markets continued to strengthen in September, with the Cotality Dwelling Worth Index rising 0.8%—the biggest month-to-month enhance since October 2023—pushed by a 0.9% acquire throughout the capital cities.
Over the September quarter, the nationwide HVI rose by 2.2%, advancing from a 1.5% enhance within the June quarter and greater than doubling the 1.1% uplift recorded within the March quarter. This quarterly progress translated to an $18,215 acquire within the median dwelling worth.
Momentum out there has broadened, with each capital metropolis and regional space registering progress in dwelling values over the month, the quarter, and the previous yr. Nonetheless, variance within the charge of growth is changing into obvious as soon as extra.
“The variety of houses on the market on the finish of September was about 53% decrease than common in Darwin, 45% beneath common in Perth and down 31% in Brisbane. On the similar time, estimates for quarterly residence gross sales are monitoring above common, demonstrating a transparent disconnect between demand and provide,” Cotality’s analysis director, Tim Lawless, stated.
Home values typically outpaced unit values throughout capital cities throughout the September quarter, with will increase of two.4% for homes and 1.7% for items. Nevertheless, Brisbane was a notable exception, as unit values outperformed homes for the seventh consecutive quarter on account of sustained undersupply. Perth and Hobart additionally noticed unit values rise greater than home values this quarter, although this was not as extended as in Brisbane.
Worth progress was seen throughout all market segments. Value progress has now shifted from the decrease to the center market, doubtless pushed by improved borrowing capability as rates of interest fell. Over the identical interval, decrease quartile dwelling values within the mixed capitals rose by 2.6%, the center market by 2.7%, and the higher quartile by 1.8%.
Marketed housing provide stays properly beneath common in all capital cities, supporting continued upward stress on residence values. Over the 4 weeks to twenty-eight September, capital metropolis listings had been round 18% beneath the earlier five-year common, whereas estimated gross sales volumes for the September quarter had been 7.3% above the identical benchmark—underscoring a pronounced imbalance between restricted provide and elevated transaction exercise.
This persistent mismatch between restricted provide and strong demand has contributed to more and more beneficial promoting circumstances. Public sale clearance charges have persistently hovered round 70% since mid-August, rising from a mean of roughly 63% throughout the June quarter and 62% throughout the previous March quarter.
