Property prices have reached new highs across multiple capital cities, however, experts suggest the market is shifting in favour of buyers.
The latest House Price Report revealed prices in major capitals continued to grow, with Sydney, Brisbane, Adelaide, and Perth reaching record highs.
Perth led the way with a 25.3 per cent annual increase to $894,842, followed by Adelaide at 16.9 per cent to $973,336, and Brisbane at 14.8 per cent to $994,945, while Sydney rose 6.1 per cent to $1,654,668.
However, the pace of growth is slowing, as quarterly gains in Sydney and Perth more than halved, with Brisbane’s growth down by a third, and Melbourne and Canberra seeing declines of 1.5 per cent ($1,024,243) and 1.2 per cent ($1,081,227), respectively.
The unit market showed similar trends, with record highs in Brisbane and Adelaide at $610,321 and $536,180, while Canberra experienced its steepest quarterly unit price drop since 1994, down 4.5 per cent to $565,288.
Domain’s Chief of Research and Economics, Dr Nicola Powell, said higher prices are taking their toll on buyers.
“This deceleration can be attributed to affordability constraints, primarily stemming from wages not keeping pace with rising property prices, compounded by the ongoing cost of living crisis,” Dr Powell said.
“As prices continue to climb, the buyer pool becomes increasingly limited. Consequently, as purchasing power diminishes, buyers find it more challenging to remain competitive, leading to a further slowdown in activity.”
According to Dr Powell, house prices in Sydney, Brisbane, Adelaide, and Perth have hit record highs, though the pace of growth has notably decreased.
“In Sydney and Perth, quarterly gains have more than halved compared to the previous quarter, while Brisbane’s growth was one-third slower, and Adelaide’s slowed marginally,” she said.
The unit market has shown similar trends, with Sydney marking a significant milestone.
“Sydney’s unit prices have achieved a full recovery, reaching a record high for the first time since December 2021,” Dr Powell said.
“Brisbane has become the second most expensive city in which to buy a unit for the first time in 25 years.”
Dr Powell said that market conditions are becoming more favourable for buyers.
“New supply in September reached its highest level since March 2022 across the combined capitals,” she said.
“As stock levels rise, clearance rates have softened to the lowest this year, properties are staying on the market longer, and price negotiations have become more common.
“Overall, the market appears to be shifting towards a buyers’ market, creating more favourable conditions for purchasing a home.”
