Australia’s smaller capital cities have been more resilient in the face of rising inflation and interest rates.
The Real Estate Institute of Australia’s latest Real Estate Market Facts report shows Australian housing prices fell overall during the June quarter as interest rates and inflation impacted affordability, but not all cities were impacted.
Sydney and Melbourne bore the brunt of the price declines, the REIA says.
REIA President Hayden Groves says the weighted average capital city median price dropped by 1.8% for houses and 0.6% for units during the quarter, with the weighted average median house price for the eight capital cities falling to $1,012,230.
He says on a city-by-city basis, the median house price increased in Brisbane, Adelaide and Darwin, remained stable in Perth, and declined in Sydney, Melbourne, Canberra and Hobart.
Increases ranged from 0.4% in Darwin to 2.6% in Adelaide.
Groves says the rental market is still a challenge with rents having increased sharply.
The weighted average median rent for a three-bedroom house in the eight capital cities went up by 3.6% to $506 per week during the quarter.
Vacancy rates have dropped in most capital cities and most are now below 1%.