The national property market has increased in value by 2.9% over the last quarter ending October 2019. 

Notably, Sydney and Melbourne increased significantly by 5% and 5.5%, respectively. Despite this, Perth and Darwin are the only two cities that recorded negative growth, the pace of decline has slowed down in Perth (-1.7%) and Darwin (-1.2%).

The housing prices remain 5.7% below the peak in 2017, which means the current prices are equal to the level 3 years ago.

Sydney - $817,886 

Melbourne - $650,197 

Brisbane - $493,426 

Adelaide - $433,140 

Perth - $435,119 

Hobart - $460,033 

Darwin - $394,132 

Canberra - $601,487 

Combined Capitals - $610,645 

Combined Regional - $378,495 

National - $529,860

The contributory factors that bought a surge in market activities including:

  • the lowest interest rate in Australian history (0.75%)

  • high population growth

  • easier access to credit

  • first home buyers’ assistance scheme that added 10,000 buyers/per year in the market.

The rates of price rebound are different between the price ranges, the top quartile of Sydney and Melbourne experienced price appreciation of 7.1% and 5.9%, respectively, while the price increases were slower in the middle and the bottom quartiles, ranging from 3.2% to 4.6%. 

However, the rental market remains weak, with rental yields falling across the major cities. The current rental yields are:

  • Sydney - 3.2%

  • Melbourne - 3.4%

  • Brisbane - 4.6%

  • Adelaide - 4.4%

  • Perth - 4.3%

  • Hobart - 5.2%

  • Darwin - 5.8%

  • Canberra - 4.7%

This is mainly due to the build-up of apartments in the last few years, which were still not fully absorbed by the market, as well as the surge of prices in the last few months.   

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