The Australian property market continues to be the principal asset class of choice for Australians with 56.1% of household wealth held in housing at a total estimated value of $9.6 Trillion. This is greater than the combined value of Australian Superannuation, Australian Listed Stocks and Commercial Real Estate.
Furthermore, with outstanding mortgage debt at $2.2 Trillion, the Australian Residential Real Estate Market has a Loan to Value Ratio (LVR) of 22.9%.
According to CoreLogic, median dwelling values for the Australian property market in the 8 capital cities as of 30 June 2023 were as follows:
| Sydney | Melbourne | Brisbane | Adelaide | Perth | Hobart | Darwin | Canberra |
| $1 073 924 | $762 537 | $725 397 | $663 136 | $588 454 | $651 187 | $492 081 | $830 217 |
Whilst Sydney continues to have the highest median dwelling value, it is worth noting that despite having the 4th largest population of all capital cities, Perth's median value ranks 7th overall. This is approximately 55% of the value of Sydney's median dwelling value, and a staggering $62 733 less than Hobart's median dwelling value which has approximately 10 times less the population of Perth.
Combined capitals (1.2% increase) outperformed combined regionals (0.5% increase) during June 2023. The Sydney (1.7%) and Brisbane (1.3%) markets led the way. In the regional market, the Regional South Australian and Regional Queensland (1.0%) markets recorded the largest increases in dwelling values.
Combined capitals (3.3% increase) outperformed combined regionals (1.1% increase) during the past 3 months to July 2023. Sydney (4.9%) and Brisbane (3.0%) outperformed their peers, whilst Darwin (-0.3%) experienced a reduction in dwelling values over the quarter. In the regional market, the Regional South Australian (2.8%) and Regional Queensland (2.6%) property markets were the top performers.
Combined capitals (4.8% decrease) outperformed combined regionals (6.5% decrease) during the past 12 months to July 2023. Perth (2.5%) and Adelaide (0.0%) were the standouts, whilst Hobart (-12.7%) and Canberra (-8.8%) experienced the largest decreases in dwelling values over the past year. In the regional market, the Regional South Australian (8.7%) and Regional Western Australian (3.7%) property markets recorded the highest levels of growth.
The Perth housing rental market continues to charge ahead with a 13.1% growth in rents over the past year. Melbourne (10.6%) and Sydney (9.4%) have also experienced substantial growth in rents for houses over the preceding 12 months.
The Canberra market has turned negative (-4.0%) over the past 12 months. Hobart (0.7%) and Darwin (2.3%) are at the lower end of rental growth.
The Sydney unit rental market has outperformed all other capital cities, experiencing an 18.8% growth in rents over the past year. Continued pressure is currently being placed on this market from an undersupply of dwellings and record levels of post-pandemic immigration. Brisbane (16.3%) and Melbourne (15.5%) have also seen substantial growth in rents for units over the preceding 12 months.
Similarly to housing rents, Canberra has experienced more moderate growth of 0.6% in unit rents over the previous 12 months. Hobart (3.8%) and Darwin (5.2%) have continued their annual increase, roughly in line with the economy's broader level of inflation.
Combined regional yields (4.6%) continue to be higher than combined capital gross yields (3.6%).
Regional Northern Territory (8.8%) and Regional Western Australia (6.5%) collectively have the highest gross rental yields, whilst Regional Victoria (4.0%) and Regional New South Wales (4.1%) have the lowest yields.
Amongst the capital cities, Darwin (6.4%) and Perth (4.9%) continue to offer the best opportunities for investors to purchase positive to neutrally geared property. On the opposite end of the spectrum, Sydney (3.1%) and Melbourne (3.5%) continue to offer the lowest gross rental yields.
Find the full version of the National Media Release by CoreLogic here.
You can find the Property Market Update for June 2023 here.
