Australia’s property market upswing continues as house prices and rents rise again

The Australian housing market upswing continued in the first month of 2024 with property values rising another 0.4%.

As house prices rose, renters continued to feel pain, with the national rental index recording its biggest monthly rise since April. Rents were up 0.8% in January, after a 0.65% rise in December.

The 0.4% increase in home values, according to data group CoreLogic, marked the 12th straight month of value rises, and was up from the 0.3% increases in November and December.

Despite the headline result, housing market performance remained varied around the country. Three capitals recorded a subtle decline over the month (Melbourne -0.1%, Hobart -0.7% and Canberra -0.2%), while, Perth, Adelaide and Brisbane values continued to rise at the monthly rate of 1% or more.

CoreLogic’s research director, Tim Lawless, said Perth led the capital city increases, rising 1.6% in January.

“The western capital continues to see housing demand outweigh supply, helping to push values 16.7% higher over the past 12 months. Despite that, housing prices remain relatively affordable compared with most capital cities, with the median dwelling value sitting just under $677,000.”

House values continued rising at a faster rate to unit values in January, with the gap between the median capital city house and unit values at a record high of 45.2%.

Across the combined capitals, detached housing values rose by half a per cent over the month, adding the equivalent of about $4,800 to the median house value while units increased a smaller 0.1%, equivalent to a $900 lift.

“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,” Lawless said.

Regional markets were now showing a stronger trend in value growth relative to the capital cities.

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