Australian property prices are now rising in every single capital city at an 'unsustainable' rate
Summary
In the month of January, Melbourne and Sydney prices jumped 1.2% and 1.1% respectively, again leading the national market higher. Hobart put on 0.9%, Brisbane 0.5%, Adelaide 0.2% and the bush capital Canberra even managed 0.3% as some of those same properties faced destruction from encroaching bushfires. Meanwhile, even the nation’s weakest performers Perth and Darwin scratched out the smallest of monthly gains, after five-year slumps. Some areas, in particular, are on track to break new ground sooner rather than later according to Lawless, like Melbourne’s East, where “with such a rapid rate of growth, housing values in this area are likely to reach a new record high over the coming months.” More broadly, however, soaring price growth appears to be mellowing somewhat as capital gains face “affordability constraints in the largest capital markets. “There is evidence to suggest that housing value growth rates are tapering in Sydney and Melbourne, although with values rising at more than 1% month-on-month, this pace is still unsustainable considering household income growth is sluggish and housing affordability challenges are worsening,” Lawless said.
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