Australian housing market upswing extends into the New Year

National dwelling values rose 0.4% in January Regional Australia continues outperforming capitals for price growth House sales volumes have defied worsening affordability

The Australian housing market’s upwards trajectory has continued into 2024, with CoreLogic data showing a 0.4% rise in national dwelling values this January. This marks the 12th consecutive month of value growth across the combined capital cities and regional areas.

Results remain diverse across states and cities though. While Perth, Adelaide and Brisbane continued posting solid 1%+ monthly gains, values slipped slightly in Melbourne, Hobart and Canberra.

At a granular level, houses continue to outperform units significantly. In fact, January 2024 has seen a record 45.2% difference in the median price of houses and units across the capital cities.

Tim Lawless, Research Director at CoreLogic, provides further evidence into the demand for detached homes over units, stating that “Since the commencement of the upswing, capital city house values have surged 11.0% higher while unit values are up 6.9%. It seems that most Australians are willing to pay a higher premium than ever for a detached home.”

Perth sees the strongest capital growth, while Melbourne and Sydney continue cooling

Perth’s housing revival keeps powering on, with home values up 1.6% in January. This equals the city’s robust monthly growth rate over the past quarter. With demand still outweighing supply, Perth values have surged nearly 17% over the last 12 months, and the Total Return is sitting at 22.2%, the highest across the country.

Despite this, Perth remains a competitive location with house prices still affordable compared to other Australian capital cities, at a median value of $676,823.

Conversely, Melbourne and Sydney – the two largest markets – posted more sedate results of -0.1% and 0.2% respectively this month. Tighter credit conditions and eroding affordability continue dampening activity

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