The Australian property market continues to be the principal asset class of choice for Australians with 56.3% of household wealth held in housing at a total estimated value of $10 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 22.0%.
According to CoreLogic, median dwelling values for the Australian property market in the 8 capital cities as of 30 September 2023 were as follows:
| Sydney | Melbourne | Brisbane | Adelaide | Perth | Hobart | Darwin | Canberra |
| $1 110 660 | $776 716 | $761 739 | $691 591 | $618 363 | $658 994 | $493 362 | $836 327 |
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 56% of the value of Sydney's median dwelling value, and $40 631 less than Hobart's median dwelling value which has approximately 10 times less the population of Perth.
Combined capitals (0.9% increase) outperformed combined regionals (0.4% increase) during September 2023. The Adelaide (1.7%), Perth & Brisbane (1.3%) markets led the way. In the regional market, the Regional West Australian (0.8%) and Regional Queensland (0.6%) markets recorded the largest increase in dwelling values.
Combined capitals (2.5% increase) outperformed combined regionals (1.1% increase) during the past 3 months to October 2023. Adelaide (4.3%) and Brisbane (3.9%) led their peers. In the regional market, the Regional South Australian (2.8%) and Regional Queensland (2.3%) property markets were the top performers.
Combined capitals (5.1% increase) outperformed combined regionals (0.4% increase) during the past 12 months to October 2023. Perth (8.8%) and Sydney (7.3%) were the standouts, whilst Hobart (-7.0%) and Canberra (-3.0%) experienced the largest decreases in dwelling values over the past year. In the regional market, the Regional South Australian (9.3%) and Regional Western Australian (6.2%) property markets recorded the highest levels of growth.
The Perth housing rental market continues to charge ahead with a 12.7% growth in rents over the past year. Melbourne (11.3%) and Sydney (9.1%) have also experienced substantial growth in rents for houses over the preceding 12 months.
The Canberra market remains negative (-4.1%) along with the Hobart market (-1.9%).
The Perth unit rental market has outperformed all other capital cities, experiencing a 16.2% growth in rents over the past year. Continued pressure is currently being placed on this market from an undersupply of dwellings. Sydney (14.3%) and Brisbane (14.0%) have also seen substantial growth in rents for units over the preceding 12 months.
Similarly to housing rents, Hobart (-0.9%) and Canberra (-0.3%) have experienced negative growth in unit rents over the previous 12 months. Darwin (4.0%) continues its annual increase, albeit below the economy's broader level of inflation.
Combined regional yields (4.4%) continue to be higher than combined capital gross yields (3.5%).
Regional Northern Territory (6.7%) and Regional Western Australia (6.4%) collectively have the highest gross rental yields, whilst Regional Victoria and Regional New South Wales (4.0%) collectively have the lowest yields.
Amongst the capital cities, Darwin (6.6%) and Perth (4.7%) continue to offer the best opportunities for investors to purchase positive to neutrally geared property. On the opposite end of the spectrum, Sydney (3.0%) and Melbourne (3.4%) continue to offer the lowest gross rental yields.
Find the full version of the National Media Release by CoreLogic here.
You can find previous Property Market Updates here.
