If you’re planning to sell your home or are looking for a new one, it’s important to know the average price of properties in your area. That enables you to identify what you can expect to charge, what’s within your budget and whether moving is a good idea.
High prices and a rising market may increase expectations for sellers and deter some buyers. A falling market, on the other hand, will make it easier to buy the property but can cause difficulties when selling to obtain the price you want.
Recent Price Performance
Up until 2019, property prices had been going through something of a decline. By the end of that year, however, the trend had reversed and the market was recovering, but the situation varied across capital cities:
- Sydney was the most expensive place to buy property, with house prices averaging $1,142,212 and rising steeply to regain most of the value lost recently. Units also recovered almost half their lost value, surging to an average of $735,837.
- Melbourne saw a 5% growth in house prices to an average of $901,951, while units grew even faster at 5.6% to $549,701.
- Brisbane saw steady growth after a downturn the previous year. House prices were the highest for two years at an average of $577,644 while units fell 3.4% in the last quarter to $377,549. Government job creation schemes and population growth were expected to drive up prices.
- Perth saw a price rebound after a downturn with houses rising to $537,013 on average and units to $342,708. The market should be improved by population growth, a government housing investment package and other initiatives.
- Adelaide’s housing market remained stagnant, with houses being up 0.6% for the year at $542,947 and units averaging $306,327 after suffering the steepest fall for six years.
- Canberra houses showed a 7.3% growth over the last quarter of 2019 to $788,621 while units grew 4% to $455,537.
- Hobart property has become increasingly expensive, houses now averaging $530,570 and units $441,104, registering new records for the year.
- Darwin is the cheapest capital city for home buyers, with houses averaging $509,452 and units being $286,249. Both experienced falls in the year and are well below peak levels.
The Coronavirus pandemic of 2020 and the recession it caused were forecast to drive property prices down by 10-20%. However, if the virus remains under control, this should no longer occur and average prices have risen.
The increase is thought to be due to the low cost of borrowing and the expectation that interest will remain low for at least three years. This has attracted first time buyers to the market and helped to fuel demand.
House prices increased by 0.8% in November 2020 and 3.1% for the year, with further rises forecast for 2021. However, the rise is not consistent across all properties, the lack of international students causing apartment values to fall. Nevertheless, 2021 is expected to be a sellers’ market and so the opportunity is there with the right estate agent.