The February interest rate increase failed to slow the growth of Australia’s property market, as home prices continued to rise in mid-sized cities. Perth led the gains with a 2.3% increase, followed by Brisbane at 1.6%, and Adelaide at 1.3%. In contrast, prices remained relatively stable in Sydney and Melbourne.
Despite this relative stability, the median house price reached $1.3 million in Sydney and $830,000 in Melbourne, while the national median price surpassed the $1 million mark. The CoreLogic Home Value Index held steady at 0.8% in February, with the national median dwelling value reaching $922,838.
Regional markets recorded annual growth of 1.1%, compared to a 0.6% increase across capital cities. Gerard Burg explained that the growth in mid-sized cities is largely due to limited housing supply. Perth, for example, experienced a 48% drop in listings compared to its five-year average, driven by strong migration into Western Australia and weak levels of new construction.
Meanwhile, Sydney and Melbourne saw increases in new property listings of 9.7% and 12%, respectively. More affordable properties in Sydney rose by 0.8%, supported by growing demand from first-home buyers and government-backed loan programs.
Burg noted that the impact of interest rate hikes has been more pronounced in the higher-end segments of the market, with a gradual shift in rate expectations since last October.
Regional markets continued to outperform, benefiting from buyers seeking more affordable housing options, and recorded growth at nearly double the pace of major cities in February.
