Advertisement

Through the roof: House prices soar 2.1 per cent, biggest rise in two decades

House prices jumped 2.1 per cent in February, their largest national monthly rise since August 2003, spurred on by record low mortgage rates, improving economic conditions and government incentives.

Mar 01, 2021, updated Mar 01, 2021
The falls in house prices appear to be abating.
(ABC News: Eliza Laschon)

The falls in house prices appear to be abating. (ABC News: Eliza Laschon)

Housing analysts CoreLogic say housing values are rising across every capital city and state region, a synchronised growth phase that hasn’t been seen in Australia for more than a decade.

The last time this occurred for a sustained period was mid-2009 through to early 2010, as post-GFC stimulus fuelled buyer demand, CoreLogic’s research director Tim Lawless said.

The CoreLogic national home value index showed Sydney and Melbourne were among the strongest markets in the month, rising 2.5 per cent and and 2.1 per cent respectively, as Australia’s two largest cities caught up from weaker performances through 2020. Brisbane was up by 1.5 per cent.

Lawless said Sydney and Melbourne are still recording values below their earlier peaks and it is unclear whether this new found growth can be sustained.

“However, at this current rate of appreciation it won’t be long before Australia’s two most expensive capital city markets are moving through new record highs,” he said.

“With household incomes expected to remain subdued and stimulus winding down, it is likely affordability will once again become a challenge in these cities.”

Regional markets were 2.1 per cent up over February, remaining ahead of their capital cities counterparts, up two per cent.

Regional areas generally recorded less of a decline in housing values through the worst of the COVID period last year, while also showing an earlier and stronger growth trend through the second half of last year.

This regional preference is reflected in the annual growth rate, where the combined regionals index was 9.4 per cent higher while the combined capital city index is up by a much smaller 2.6 per cent.

CORELOGIC NATIONAL HOME VALUE INDEX FOR FEBRUARY

National – up 2.1 per cent

Sydney – up 2.5 per cent

InQueensland in your inbox. The best local news every workday at lunch time.
By signing up, you agree to our User Agreement andPrivacy Policy & Cookie Statement. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Melbourne – up 2.1 per cent

Brisbane – up 1.5 per cent

Adelaide – up 0.8 per cent

Perth – up 1.5 per cent

Hobart – up 2.5 per cent

Darwin – up 0.7 per cent

Canberra – up 1.9 per cent

Combined capitals – up 2.0 per cent

Combined regional – up 2.1 per cent

Local News Matters
Advertisement

We strive to deliver the best local independent coverage of the issues that matter to Queenslanders.

Copyright © 2024 InQueensland.
All rights reserved.
Privacy Policy