Home values eclipse capital gains

Townsville home prices shot up almost 20 per cent across the past financial year with growth outstripping most capital cities.

The three-bedroom home at 20 Laburnum St, Cranbrook, sold for $470,000 in June. Picture: realestate.com.au

Townsville home prices shot up almost 20 per cent across the past financial year with growth outstripping most capital cities.

The latest PropTrack Home Price Index showed the Townsville median dwelling price rose 19.96 per cent in the 2023/2024 financial year to $453,000.

This was largely driven by the 21.4 per cent increase in house prices in the past 12 month, while the median cost of a unit in Townsville was up 6.17 per cent in the same time.

PropTrack senior economist and report author Eleanor Creagh said in wider regional Queensland, the median home price was up 10.84 per cent year-on-year, while the Brisbane median was up 14.14 per cent.

“Queensland has recorded the strongest home price growth across the country since the pandemic began, with home values surging in Brisbane (up 70.6 per cent) and regional Queensland (up 71.7 per cent) since March 2020,” she said.

“Home prices in Brisbane have now surpassed Melbourne and Canberra, making Brisbane the second-most expensive market to buy a home in Australia.”

PropTrack senior economist, Eleanor Creagh. Photo: Supplied

The Price Index showed across the combined Australian capital cities, the median home price rose 0.22 per cent in June to hit a new peak of $855,000.

“This marked a 6.91 per cent increase year-on-year,” Ms Creagh said.

“However, performance has varied as conditions differ across the capitals.”

Sydney retained its position as most expensive capital city with a median price of $1.107m, after annual growth of 6.39 per cent.

The best performers for the year were Perth, Adelaide and Brisbane.

The median price was up 22.52 per cent in Perth to $713,000, 14.61 per cent in Adelaide to $759,000, and 14.14 per cent in Brisbane to $840,000.

ACT saw growth of just 0.58 per cent to sit at a median home price of $836,000.

In Melbourne, home prices dropped 0.07 per cent in the past 12 months to $803,000, while in Hobart the median was sitting at $671,000 after an annual drop of 2.06 per cent.

This three-bedroom home at 77 Florida Pl, Kirwan, sold for $410,000 in June after selling for $235,000 November 2020. Picture: realestate.com.au

Ms Creagh said national home prices had cycled through 18 consecutive months of growth to hit a fresh peak in June, despite the pace of growth slowing as winter begun.

“Although the number of homes hitting the market this year has lifted, strong population growth, tight rental markets and home equity gains continue to bolster demand,” she said.

“Meanwhile, building activity remains challenged, resulting in the chronic shortage of housing being exacerbated by a lack of new construction.”

Ms Creagh said interest rate stability had sustained buyer and seller confidence, while the continuous rise in home prices motivated many to overcome affordability challenges and transact with the expectation of further growth.

“As a result, demand is outpacing supply, pushing prices and rents higher and offsetting the higher interest rate environment,” she said.

“From July, tax cuts will lift household incomes increasing borrowing capacities and buyers’ budgets, further supporting price growth.

“Although home prices are expected to rise in the coming months, they will likely maintain a slower pace through the seasonally quieter winter period, particularly with increasing uncertainty around interest rates.”

Originally published as Home values eclipse capital gains