Perth has maintained its streak of relative out-performance and was the strongest market in the country for March monthly and annual home price growth, according to the latest PropTrack Home Property Index released this week.
Subscribe now for unlimited access to all our agricultural news
across the nation
or signup to continue reading
Prices in the capital city surged 0.99 per cent in March - the 20th consecutive month of growth - and are up 18.62pc from March 2023 levels.
This is the strongest pace of annual growth on records back to 2010.
PropTrack said record low supplies amid strong buyer demand had resulted in a sellers' market in Perth.
The relative affordability of the city's homes, population growth and very tight rental markets are also supporting home values in that city, it said.
PropTrack said national home prices increased by 0.34pc to hit a new record in March, taking prices up 1.57pc so far this year to sit 6.79pc above March 2023 levels.
Prices across the combined capital cities rose 0.40pc to a new peak in March, with capital city prices now sitting 7.64pc above levels from the same time last year.
All capitals, except Hobart, Tasmania, had price rises in March 2024.
Throughout the past year, smaller capitals have out-performed, and this trend persisted into March.
Perth, Adelaide, South Australia and Brisbane, Queensland, home prices hit record highs with annual growth of 18.62pc, 13.47pc and 12.9pc, respectively.
In the first three months of 2024, year-on-year home price gains in Perth have been the strongest on record dating back to 2010, and home prices are almost on par with Hobart.
Prices in Australia's capital cities have outpaced those in regional areas this year to date.
Even so, regional areas lifted 0.19pc in March to a new peak.
Regional South Australia (up 0.64pc) and regional Queensland (up 0.49pc) led growth, while prices declined in regional Victoria (down 0.35pc).
"The home price upswing persisted in March, and prices reached a record high nationally," the latest PropTrack report said.
"Despite an increase in the number of homes hitting the market this year, demand has absorbed the surge leading to further price increases.
"As was widely expected, the Reserve Bank of Australia kept the cash rate on hold at 4.35pc in March and many expect the next move for interest rates will be down, although timing remains uncertain.
"The expectation that interest rates may begin to move lower in late 2024 will sustain buyer and seller confidence.
"Housing demand is also being buoyed by population growth, tight rental markets, resilient labour market conditions and home equity gains.
"Meanwhile, the sharp rise in construction costs and labour and material shortages have slowed the delivery of new builds, hampering the supply of new housing.
"The imbalance between supply and demand is likely to futher offset the impact of affordability constraints and a slowing economy.
"As a result, prices are expected to remain on the rise in the months ahead."
