This article is contributed by Lily Chong, Country Head of IQI Australia
Australia’s property market is back on the rise, with national home values increasing by 0.4% in March, marking the second month of growth after a brief three-month decline. According to CoreLogic’s Home Value Index, this broad-based recovery saw positive results in every capital city except Hobart, and gains across all regional areas.
Darwin led the way with a 1.0% rise, while Sydney and Melbourne—Australia’s largest markets—have now enjoyed two months of upward movement. Sydney values are just 1.4% below their record high, and Melbourne, despite a longer downturn, has recovered by 0.9% over the past two months.
What’s behind the bounce? Improved sentiment following the February interest rate cut is likely the main driver, improving both borrowing capacity and mortgage serviceability, says CoreLogic Research Director, Tim Lawless. However, he notes that with the rate-cutting cycle expected to be drawn out, affordability constraints could test the momentum.
Interestingly, the growth in values is becoming more balanced across market segments. In Sydney, for example, upper-tier properties rose 0.6% in the past three months compared to 0.3% in the lower quartile, reversing a recent trend of stronger gains among more affordable properties.
Perth has recorded a remarkable 75.9% surge in property values since the start of the pandemic, adding $348,519 to the median dwelling price, now at $807,715, according to CoreLogic. Houses rose by $367,000 and units by $225,000 over five years, making Perth the top-performing capital city in Australia, ahead of Adelaide and Brisbane.
Regional WA also saw strong growth, with Geraldton up 94.4% and Bunbury rising 81.1%. The rapid rise is attributed to Perth’s previously low price point, following a market decline before 2020.
Despite these gains, Perth remains more affordable than Sydney, Brisbane, Canberra, and Adelaide. Analysts predict values will grow by another 8% in 2025, though housing affordability remains a concern, especially for younger buyers, as highlighted by recent research from the Bankwest Curtin Economics Centre.
For investors and homeowners alike, Perth’s property market presents exciting opportunities. Whether you’re considering selling, buying, or investing, now is the time to explore your options. Contact our team at sales@iqiwa.com.au to discuss your property goals today.
