As rates rise, here's how Australian housing prices look in every capital city

The median value of Australian property has fallen 2 percent since early May, to $747,800—a figure that includes homes and apartments, according to the latest housing data.

CoreLogic research director Tim Lawless says Australian housing market conditions are likely to worsen as interest rates tick higher throughout the rest of the year.

Here’s a breakdown of the states from Australia’s latest housing figures.

Sydney: house prices are falling

Average change: 2.2 percent drop in July

Sydney house median value: $1,346,193

Average unit value: $806.310

Five of the eight capital cities saw month-on-month declines in July, led by Sydney occupancy values ​​which saw a 2.2 percent decline.

“Although the housing market is only three months into a downturn, the national Home Value Index shows that the rate of decline is comparable to the start of the global financial crisis (GFC) in 2008, and the sharp decline in the early 1980s,” Mr Lawless said.

“In Sydney, where the decline was very rapid, we saw the sharpest decline in value in almost 40 years.”

The port city still has a median house price of $1.35 million and average unit price $806,300.

LIVE UPDATES: Follow the latest updates from the RBA rate decisions

Adelaide: house prices go up

Change: 0.4 percent increase in July

Adelaide median house value: $705.634

Average unit value: $431,409

Corelogic data shows Adelaide residences have registered an annual increase of 24.1 per cent.

Brisbane: house prices drop

Change: 0.8 percent down in July

Brisbane median house value: $884,336

Average unit value: $504,520

Brisbane inching to negative territory for the first time since August 2020.

Mr Lawless said an upward trend in rents was seen in every capital city, led by Brisbane with a 4.2 per cent rise in rents over the three months to July.

“The rental market is very tight, with vacancy rates of around 1 per cent or lower in many parts of Australia,” he said.

Canberra: house prices drop

Change: 1.1 percent drop in July

Canberra median house value: $1,047,912

Average unit value: $626,128

Canberra’s median home value is $1.05 million.

Mr Lawless said that unit value in all capital cities combined generally record a smaller fall compared to the value of the house.

“This trend is most visible in the three largest capital cities as well as Canberra, where housing affordability challenges may shift more demand to the mid to high density sector,” said Lawless.

“Such widespread and rapid rental growth is likely to remain one of the main domestic factors driving inflation, along with construction, food, transport and energy costs.

“While some of this can be attributed to global supply chain issues, the leasing situation is a domestic one caused by a combination of tight supply and rising demand,” said Lawless.

Darwin: house prices are rising

Average change: 0.5 percent increase

Darwin median house value: $589,748

Average unit value: $374,340

The RBA decided to raise interest rates for the fourth month in a row, taking the cash rate to 1.85 percent.(ABC News)

Hobart: house prices drop

Change: 1.5 percent decrease

Hobart median house value: $782,748

Average unit value: $577,307

Corelogic data shows Hobart occupancy values ​​posted a 10.1 percent increase over the year to July.

Melbourne: house prices drop

Change: 1.5 percent decrease

my Melbourneedian house value: $964.950

Average unit value: $614.351

Melbourne housing prices are now down for the fifth straight month with prices registering a 1.5 percent decline in July.

Data showed that Geelong’s main regional hub, Ballarat, also saw a decline in home values ​​for the three months to July.

Perth: house prices slightly up

Change: 0.2 percent increase

Perth median house value: $587,024

Average unit value: $411,460

Looking at the annual figures, Perth residences have recorded an increase of 5.5 percent.

Mr Lawless said the Perth, Adelaide and Darwin property markets had recorded sharp declines in the pace of capital gains since the first rate hike in May.

Property prices in Sydney, Melbourne and Hobart fell sharply in July.(Core Logic)

How will the rate increase change things?

The RBA has raised interest rates by 1.75 percentage points since the first rate hike in May to 1.85 percent.

Just as cutting interest rates to record lows was the main driver of the price boom coming out of pandemic lockdowns, AMP Capital’s chief economist Shane Oliver said the rate spike now underway would be the main driver of the property market going forward.

“Being able to borrow at a fixed rate of 2 percent or less was the main driver of the price spike with fixed rate loans accounting for 40-50 percent of new loans about a year ago,” he said.

“But with fixed mortgage rates now nearly tripling from their lows and variable rates rising rapidly, this has substantially reduced the number of new homebuyers who can borrow and therefore their capacity to pay.

“As a result, the rug was effectively pulled out of the property market.”

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Australian house prices fall at ‘fastest rate’ since 2008(Emilia Terzon)

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