Regions and most cities ring up healthy property sales increases

Property prices in Sydney have reached a new milestone, with the market recording fresh peaks in October, according to the latest PropTrack Home Price Index.

Sydney prices have recovered 2022’s falls and are now 0.32 per cent above the previous peak set in February 2022 to a median cost of $1.07m. Picture: NCA NewsWire / Max Mason-Hubers

Sydney property prices hit fresh highs last month as the spring selling season roared into full swing.

Half the capital cities and the regions are recording new peaks after national property prices rose by 0.36 per cent in October, according to housing researcher PropTrack’s latest Home Price Index. Despite economic challenges from inflation and interest rates, prices are up just shy of 5 per cent through 2023.

PropTrack senior economist Eleanor Creagh said the housing market had withstood the influx of homes being listed for sale in the popular spring selling season, which suggests demand is strong.

“National home prices moved higher in October, reaching new peak levels and demand for housing has remained strong, fuelling further home price growth and reflecting the sustained improvement in conditions,” she said.

“Strong demand stemming from the rebound in net overseas migration, tight rental markets and limited housing stock has offset the impacts of substantial rate rises and the slowing economy.”

Sydney prices have recovered 2022’s falls and are now 0.32 per cent above the previous peak set in February 2022 to a median cost of $1.07m. The country’s largest market joins Perth, Brisbane and Adelaide, which recorded the strongest growth of the year. Prices in the West Australian capital have risen almost 11 per cent over the past 12 months after it and Brisbane posted a 0.52 per cent gain last month. Adelaide grew by 0.47 per cent.

While prices in most of the remaining capitals grew last month, they were all well off previous ­record highs.

Hobart recorded some of the strongest growth of October, up 0.51 per cent, but is also the capital farthest from the peak of the market (down 6.71 per cent). Melbourne rose 0.28 per cent, while the ACT gained 0.11 per cent. Darwin fell 0.11 per cent.

Growth in regional Australia has begun to pick up, with gains of 0.32 per cent to hit new highs. However, capital cities continue to outperform (up 0.37 per cent).

PropTrack senior economist Eleanor Creagh.

Ms Creagh believes prices are likely to continue to climb as overseas ­migration puts pressure on the limited stock available.

“Interest rates may rise further, but they are likely close to, if not at, their peak,” she said. “Together with a shortage of new home builds and challenging conditions in the rental market, home prices are expected to rise further.”