Australian property values reached new heights according to CoreLogic’s national Home Value Index, reversing a recent downward trend.
CoreLogic estimates the combined value of residential real estate rose to $11.3 trillion in March alone with national home values rising 0.7%, capitals up 0.5% and regions up 1.4% over the rolling quarter.
The monthly rise in values was broad-based, with every capital city except Hobart recording a positive change, along with each of the rest-of-state regions. The monthly change across the capitals ranged from a 1.0% gain in Darwin to a -0.4% fall in Hobart.
Regional markets continue to outperform the capitals, with the combined regionals index rising 0.5% compared with a 0.4% gain seen across the combined capitals. However, the growth trajectory looks to be converging as the capital city trend accelerates and the regional trend holds steady.
According to figures, properties are staying on the market longer, with the national median time to sell increasing from 30 days a year ago to 40 days in Q1 2025.
National Dwelling Values Ended Q1 Positively
After falling for three consecutive months, the rolling quarterly trend for national dwelling values ended Q1 in positive territory, with values up 0.7%.
Despite the uptick in the quarterly result, the annual trend continued to lose momentum, with values up just 3.4% over the year to March.
With house values up 0.5% and unit values up 0.3% over the month, the premium for houses increased to 31.5% in March, up from a recent low of 25.8% in January 2023.
Australian Property Hits Big Five Year Benchmark
Australia’s housing market has seen national home values surge 39.1% over the past five years, adding approximately $230,000 to the median dwelling value, according to CoreLogic.
Along with the $11.3 trillion Australian residential real estate valuation, outstanding mortgages against all residential housing are now just $2.4 trillion, resulting in a very comfortable 21% Loan to Value ratio, according to commentators.
55.3% of total Aussie household wealth is now held in residential property, reinforcing the country’s confidence in the local property market.
The Rental Markets
Despite a seasonal uptick in the quarterly measure (1.7%), the rolling 12-month change in national rental values has continued to lose momentum, with rents up just 3.8% over the year to April.
The lowest annual change in rents in four years, this month’s reading is just 1.8 percentage points above the pre-COVID decade average of 2.0%.
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