House prices increase in every major city except for one
Australian house prices have rebounded in every capital city except for Melbourne, meanwhile properties in Byron Bay have surged by almost a third in the past year.
Property sales group Domain revealed buyers returned to real estate during the September quarter as they braced for tax cuts to be fast-tracked.
The coastal town is home to many famous celebrities such as Chris Hemsworth and Zac Efron and has seen a 29.6 per cent year-on-year surge in September.
The average house price in Byron Bay is currently $1.16 million.
Sydney, Australia’s biggest housing market, saw a 1.2 per cent increase in median house prices to $1.154 million during the September quarter, 6.8 per cent over the past year.
Domain senior research analyst Nicola Powell said Sydney properties were now about $43,500 below the mid-2017 price peak.
“Despite house values rising modestly, the pace of quarterly growth was almost four times lower than the same time last year,” she said.
Buyers are attracted to the current market due to low interest rates, government tax cuts and other incentives.
“Consumer confidence has made a remarkable rebound, boosted by the federal budget, success in containing the coronavirus and the prospect of further interest rate cuts,” Ms Powell said.
“Strong buyer demand has absorbed rapidly rising new supply.”
“With fewer investors and foreign interest, first home buyers are taking advantage of the reduced competition, government incentives and low mortgage rates.”
Brisbane house prices have increased 0.4 per cent $596,316 over the September quarter, making last quarter's fall short-lived.
“Brisbane's property values remain resilient given the economic impact of Covid-19,” Ms Powell said.
“Price growth had been more subdued in the lead up to the Covid-19 outbreak compared to Sydney and Melbourne. Since the success in containing Covid-19 and restrictions have eased, property market confidence has lifted.”
All capital cities recorded house price growth over the September quarter apart from Melbourne.
Australian house prices:
SYDNEY: Up 1.2 per cent to $1,154,406
MELBOURNE: Flat at $875,980
BRISBANE: Up 0.4 per cent to $596,316
ADELAIDE: Up 2.8 per cent to $564,927
PERTH: Up 0.5 per cent to $534,336
HOBART: Up 6.9 per cent to $555,754
CANBERRA: Up 3.5 per cent to $817,810
DARWIN: Up 6.6 per cent to $539,463
Source: Domain House Price Report for the September quarter of 2020 based on median house prices