Cheaper properties have experienced the strongest price growth over the past year, according to a leading property expert.
Ray White Group Chief Economist Nerida Conisbee said houses in the lowest percentile increased by 12.2 per cent in the last 12 months.
“In comparison, our most expensive homes have seen a price slowdown, perhaps now reflecting the prolonged impact of higher interest rates,” Ms Conisbee said.
“Long term, Australia’s most expensive homes have generally outperformed the rest of the market.”
Ms Conisbee said that Perth and Regional WA continue to show robust growth despite weak demand for key commodities.
“Perth typically moves more closely with mineral prices than interest rates however price growth is continuing despite relatively weak demand conditions for both iron ore and lithium,” she said.
“Perth house prices increased by one per cent over the month and over 23 per cent for the year.
“Unit growth was also strong, up over 20 per cent over the year.”
Adelaide and Brisbane also outperformed the national average, with Brisbane approaching the million-dollar median house price.
“Unit prices in Adelaide and Brisbane are continuing to see stronger increases than house prices,” Ms Conisbee said.
Surprisingly, Sydney and Melbourne showed resilience despite indicators of weakening demand.
“Both cities have seen lower numbers of active bidders at auction and a pick up in the number of properties for sale,” Ms Conisbee said.
“Both cities saw an increase in pricing of 0.2 per cent or more in September. Melbourne continues to be the slowest market but is still recording year-on-year growth.”
Ms Conisbee said that continued acceleration in construction costs and population growth are likely drivers of the ongoing price increases in many markets.
