Property price growth may have softened in recent months in the biggest cities, but many areas have still achieved extraordinary growth in the latest property cycle.
According to figures from Domain, the pandemic’s “once-in-a-generation” property boom resulted in national prices peaking in March 2022.
It says despite recent softening in the national data, the price cycle still remains 27% higher for the combined capital cities on average than it did in mid-2020 with the average home price $218,000 higher. In the regions prices are about 30% higher on average.
Domain chief of research and economics Nicola Powell says it has been fascinating watching the real estate market during the pandemic.
“After soaring price growth in 2021, it was inevitable that we would see an adjustment phase of the property cycle in 2022,” she says.
Overall, Powell says the height of the price upswing has been much higher than the downturn.
“It is a reminder that home-owners or prospective buyers need to maintain an overall perspective,” she says.
“History tells us that, in the last 30 years, the duration and steepness of an upswing are longer and greater than a downturn, supporting the idea that it’s not timing the market, it’s the time spent in the market that counts.”
Her analysis shows that since 2020 total overall gains compared to the pandemic trough was highest in Hobart at 47.2%, followed by Adelaide’s 46.9% and Canberra’s 41.2%.
Brisbane is 36.1% higher, followed by Darwin 29.8%, Sydney 28.5%, Perth 21.9% and Melbourne 16.7%.