Home prices increase at fastest rate in a decade

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    House prices in Australia increased at the highest quarterly rate in a decade over the March quarter, according to new data from the Real Estate Institute of Australia.

    The weighted average capital city median price for both houses and other dwellings rose at a decade-high rate according to REIA. The weighted average capital city median price for houses rose by 6.8%, while the price for other dwellings rose by 2.7%.

    “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,” said REIA President Adrian Kelly. “At $1,309,195, Sydney’s median house price continues to be the highest amongst the capital cities, 49.8% higher than the national average. At $500,000, Perth has the lowest median house price across Australian capital cities, 42.8% lower than the national average.”

    Over the 12 months to the March quarter, the weighted average median capital city house price spiked by 11.1%, REIA reported.

    The weighted average median price for other dwellings across the eight capital cities rose to $621,313 over the March quarter.

    “Over the quarter, the median price for other dwellings increased in Sydney, Melbourne, Perth, Hobart and Darwin, remained steady in Brisbane and Canberra, but decreased in Adelaide,” Collins said. “Over the 12 months to the March 2021 quarter, the weighted average capital city median price for other dwellings increased by 3%.”

    The median rent for three-bedroom houses increased in all capital cities over the March quarter to a median of $452.50 per week, REIA reported.

    “Over the past 12 months, the median rent increased in all capital cities except Melbourne, where it remained steady,” Collins said. “Darwin had the highest annual growth at 17.3% and now has the second highest rent at $538.50 a week, with Canberra the highest at $570 per week.”

    During the March quarter, median rent for two-bedroom dwellings other than houses increased in Brisbane, Adelaide, Perth, Canberra, Hobart and Darwin, remained steady in Melbourne and decreased in Sydney. Perth saw the largest rise over the quarter at 8.3%.

    The national capital city vacancy rate rose to 3.3%, driven primarily by Melbourne’s rate of 6.1%, REIA reported.

    Ryan SmithRyan Smith is currently an executive editor at Key Media, where he started as a journalist in 2013. He has since he worked his way up to managing editor and is now an executive editor. He edits content for several B2B publications across the U.S., Canada, Australia, and New Zealand. He also writes feature content for trade publications for the insurance and mortgage industries.
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