Australian house prices continue to rise, setting new records.

According to Domain’s most recent House Price Report, Australian home values have reached all-time highs, with both houses and apartments seeing continuous increase throughout the March quarter of 2024. For homes, this is the fifth consecutive quarter of growth; for units, it is the fourth.

Prices will rise even if growth rates are less than in prior quarters, according to experts. This rising trend is being driven by a number of factors, including a persistent lack of new building, rapid population increase, high construction costs, and a competitive rental market. “There is still a significant demand for homes, especially in major cities like Sydney and Melbourne, but the pace of price growth has slowed due to an increased supply of homes for sale”.

The report showcases prices in key cities that have broken records. For the first time, the price of a house in Sydney has surpassed $1.6 million, and the price of a unit in Perth has increased to all-time highs, exceeding levels not seen in more than ten years. Dr. Powell continued, “These numbers show a strong demand for residential real estate, despite obstacles like high interest rates and pressures from the rising cost of living.”

Throughout the quarter, prices for both houses and apartments in Brisbane, Adelaide, and Perth set new records. Adelaide’s housing prices surged to more than $900,000, demonstrating the competitive nature of the smaller capital cities’ markets.

According to Dr. Powell, difficult renting situations may encourage more first-time buyers to enter the market sooner, particularly in the more cheap end. It is anticipated that this trend will persist, impacting both homes and apartments in diverse areas.