Australian House Prices Rise for 4th Consecutive Month: Record-High Suburbs Double — Sydney Auction Clearance Rate at 70%

Week’s Key Focus

Australian Financial Review reports that Australian house prices have seen a strong upward trend for four consecutive months, with the number of record-high price suburbs nearly doubling in June compared to the previous month.

According to CoreLogic data, approximately 15% of suburbs across Australia reached their highest property value since the peak of the pandemic property boom, compared to just 8% a month ago.

Tim Lawless, Research Director at CoreLogic, stated that while the pace of price growth is expected to slow down, the proportion of suburbs hitting new price highs may increase. There may be more suburbs achieving record-high prices, depending on the trajectory of price growth. Currently, the Australian housing market still carries some downside risks. We can expect the rate of price growth to gradually decelerate. However, prices are still on the rise. So, areas that did not experience significant declines during the downturn will likely reach new price peaks.

According to the Australian Financial Review, 1.6% of Melbourne suburbs reached record-high prices, up from 0.8% in May. In Sydney, this proportion increased from 0.3% to 0.8%.

During the previous peak of the housing market, 74.7% of Sydney suburbs achieved record-high prices, while Melbourne recorded 61.2%. Brisbane and Adelaide both surpassed 99%. Across Australia, over 80% of suburbs saw prices reach new highs.

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Auction Results This Week

Sydney: 526 properties participated in auctions, 329 auction results reported, 230 properties sold, with a clearance rate of 70%. The total auction value reached AUD 257,468,222, with a median price of AUD 1,470,000.
Melbourne: 535 properties participated in auctions, 368 auction results reported, 270 properties sold, with a clearance rate of 73%. The total auction value reached AUD 233,945,050, with a median price of AUD 962,500.