Economy

Housing prices soar

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Housing prices in Melbourne have soared by 5.1% in the September quarter as prices continue to rise across most of Australia.

The Real Estate Institute of Australia shows that prices for both houses and dwellings in Melbourne have risen strongly as the population surges. There was a 5.15% increase in the median house price to $431,000 in the September quarter and a 9.9% increase over the year.

Flats, units and townhouses in Melbourne also followed suit with a 5.15% increase over the quarter to $367,800 and a 13.9% increase over the year.

After several quarters of lackluster prices in Sydney, there was a small recovery in the September quarter with 1.5% growth in house prices to $538,400 (a 3.4% increase over the year.)

But prices for flats, units and townhouses in Sydney fell, down 0.9% to $360,900 with no change to the median price over the year.

Perth saw a recovery in the September quarter with its median house price increasing by 0.75% to $455,000 after a short lull in price growth. Prices for flats, units and townhouses were stronger with a 2.8% quarterly growth and an 8.8% annual growth to $370,000.

Other strong performers in house prices are Adelaide and Hobart which both saw a 2.3% increase in prices to $320,000 and $317,000 respectively. That resulted in a 10.7% annual growth for Adelaide and a 9.35% growth for Hobart.

Darwin house prices were up by 1.3% to $400,000 while flats, units and townhouses jumped 14.6% in the quarter to $320,000.

REIA president Noel Dyett says for the first time in September, Melbourne and Perth recorded a higher median than Sydney for units, flats and townhouses.

He says many home buyers are considering medium and higher density housing as a more affordable option in a market where affordability is low.

Figures for Brisbane will be released next month. See also Hot and hotter in Cairns.

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