Australian housing prices record highest growth rate in 20 years: REIA

It’s been two decades since residential property prices soared at the rate seen in the past 12 months, with houses in one city now nudging $1.5m on average, new data shows.

The latest Australian housing price statistics have revealed a staggering 23.4 per cent surge over the past 12 months – the highest growth rate in 20 years.

The Real Estate Institute of Australia described the growth as “whopping”, with president Adrian Kelly saying it was the first time since June 2002 the annual increase had been higher than 20 per cent.

Over the September quarter, the weighted average capital city median price for houses increased by 4.5 per cent to $961,642, with rises recorded across the nation.

“At $1,499,126, Sydney’s median house price continues to be the highest among the capital cities – 55.9 per cent higher than the national average,” Mr Kelly said.

There are bargains to be had on the other side of the country, however, with Perth recording the lowest median house price, 45.9 per cent lower than the national average at $520,000.

Over the same three month period, the weighted average capital city median price for other dwellings lifted by 1.4 per cent to $650,876.

But the gains were only in Sydney, Melbourne, Brisbane, Perth and Hobart while Adelaide, Canberra and Darwin declined.

The Real Estate Institute of Australia described the past year’s housing price growth as ‘whopping’. Picture: NCA NewsWire / Christian Gilles

“At $802,475, Sydney’s median price for other dwellings continues to be the highest among the capital cities – 23.3 per cent higher than the national average,” Mr Kelly said.

The West Australian capital also had the cheapest median price for non-house dwellings at $410,000, which was 37 per cent lower than the national average.

According to Mr Kelly, the weighted average rent for three bedroom houses in the eight capital cities increased by 2.4 per cent to $464 per week.

Rent increased in all capital cities over the quarter except Melbourne, where it remained stable.

Most economists are tipping national housing price growth of 7 per cent next year, followed by a fall of as much as 10 per cent in 2023 as higher interest rates dampen activity.