Markets Enter 2020 With Prices Rising

By January 16, 2020 Get insights Market Update

Most markets across Australia, including regional markets, have begun the new year (and the new decade) with real estate prices rising.

Based on the price data published by CoreLogic on 2 January, most of the 15 market jurisdictions across the nation recorded growth in their median house prices in December and in the final quarter of 2019.

The research firm provides price data on the eight capital cities and seven state regional markets (the ACT does not have regional areas). Consumers should keep in mind that these are figures from one source only and data from other sources may tell different stories.

According to the CoreLogic numbers, six of the eight capital cities and six of the seven regional markets recorded growth in their median house prices in December.

The December growth was led, rather surprisingly, by regional Northern Territory, where the median house price increased 2.6%, ahead of Sydney which lifted 2.0%. Melbourne rose 1.7% and regional Tasmania was up 1.2% in December.

Brisbane, Adelaide, regional Victoria, regional Queensland and regional NSW all recorded growth between 0.5% and 0.8% in December.

Hobart, Darwin and regional WA were the only market jurisdictions which failed to deliver growth in their median house prices in December.

There were similar outcomes with unit markets: six of the eight capital cities and several of the regional markets recorded monthly rises, headed by regional South Australia which rose 2.2% in December, followed by Hobart (1.9%) and regional WA (1.6%).

Price outcomes were even more positive in the data for the December Quarter. Six of the capital cities recorded significant rises in their median house prices and there were also positive outcomes in most of the regional markets.

The national leaders on house price growth in the final quarter of 2019 were Sydney (7.1%) and Melbourne (6.6%), but Brisbane, Adelaide, Canberra, Hobart, regional NSW, regional Victoria, regional Queensland and regional Tasmania all delivered quarterly growth between 1.5% and 3%.

Perth was down, but only by 0.1% in the December Quarter, providing further evidence that this market has bottomed and is poised for recovery after several years of decline.

All the regional markets, except the Northern Territory, recorded positive outcomes in their unit markets in the December Quarter, headed by Tasmania (3.9%), WA (2.7%) and Victoria (2.0%).

Six of the capital cities delivered quarterly growth in their apartment markets, with Hobart (5.6%) leading, followed by Melbourne (4.9%) and Sydney (4.7%). Canberra and Brisbane also had solid rises.

In annual terms, four capital cities recorded growth in both the house and apartment markets: Hobart, Melbourne, Sydney and Brisbane. Canberra had solid growth in its housing market, while its median apartment price was down but only by 0.1%.

The only capital cities with major decline in both their house and apartment markets, in annual terms, were Perth and Darwin.

About The Author
Terry Ryder

Terry Ryder

Terry Ryder has been a specialist researcher/writer on residential property for 32 years and has published four books. In 2006 he created hotspotting.com.au, to help investors find the best places to buy. He is regularly interviewed by television, radio and print media on real estate issues, and is widely sought as a public speaker.

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