Australian residential property prices rose 13.5 per cent over the 2020/21 financial year, the highest annual growth rate since 2004 and when the market was unwinding from the housing boom of the early 2000s.
The CoreLogic home value index rose 1.9 per cent in June, with prices rising in all capital cities, led by a three per cent gain in Hobart.
Over the year, house prices rose 15.6 per cent, compared to units that increased by 6.8 per cent.
Darwin posted the highest annual rate in dwelling values, increasing by 21 per cent, followed by a 19.6 per cent rise in Hobart.
CoreLogic head of research Eliza Owen said there were plenty of factors driving the housing market through the first six months of 2021 and before the recent uncertainty of growing COVID-19 cases emerged across the country.
Continued low mortgage rates, falling unemployment, elevated consumer confidence, the accumulation of savings through the COVID restrictions last year and relatively low advertised housing stock all fuelled strong demand conditions.
“However, there are some markets where performance is starting to ease more notably,” Ms Owen said.
Across the capital cities, there is a loss of momentum across Perth and Darwin, while softer growth rates are also emerging at the high end of the market.
“This easing in the pace of growth at the top end of the market is another clear signs of a shift in momentum,” Ms Owen said.
“The rest of the market tends to follow movements at the high end, and this is the first time in nine months that the high-tier growth rate has not accelerated.”
CORELOGIC NATIONAL HOME VALUE INDEX FOR JUNE
National – up 1.9 per cent per cent, up 13.5 per cent
Sydney – up 2.6 per cent, up 15 per cent
Melbourne – up 1.5 per cent, up 7.7 per cent
Brisbane – up 1.9 per cent, up 13.2 per cent
Adelaide – up 1.6 per cent, up 13.9 per cent
Perth – up 0.2 per cent, up 9.8 per cent
Hobart – up 3 per cent, up 19.6 per cent
Darwin – up 0.8 per cent, up 21 per cent
Canberra – up 2.3 per cent, up 18.1 per cent
Combined capitals – up 1.9 per cent, up 12.4 per cent
Combined regional – up 2 per cent, up 17.7 per cent