Last Updated:
Monday, 22. September 2008

Property Values in Australia

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Property in Australia

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Property Values

On this page you will find various statistics on property prices around Australia.  But it is important to realise that these figures will vary tremendously even in local areas.

For example, whilst Sydney is quoted as $579,000 in Sept 2007, the outer suburbs of Sydney are much lower in price.  Have a look at www.realestate.com.au for some example prices in a reasonable suburb in outer Western Sydney, called St Clair.  The lowest price shown on 18th March 2008 was $229,500 for a 3 Bedroom house,  4 bedroom houses started at between $289,950 and $314,950.  St Clair is a well established suburb, 49km (30 miles) West of Sydney CBD, with modern facilities and close access to the M4 Motorway.

 

Established House Prices
Data from http://www.abs.gov.au....


Quarterly Changes

Preliminary estimates show the price index for established houses for the weighted average of the eight capital cities increased 1.1% in the March quarter 2008.
The capital city indexes rose in Melbourne (+4.1%), Brisbane (+2.8%), Adelaide (+2.1%), Canberra (+1.0%), and fell in Sydney (-1.5%), Darwin (-1.3%), Hobart (-0.7%) and Perth (-0.6%).
The movement in the preliminary established house price index between September and December quarters 2007 has been revised from an estimated increase of 3.2% to an increase of 4.1%.


Annual Changes (March Quarter 2007 To March Quarter 2008)

Over the year to March quarter 2008, preliminary estimates show that the price index for established houses for the weighted average of the eight capital cities rose 13.8%.
Annually, the capital city indexes all rose - Melbourne (+25.9%), Adelaide (+21.6%), Brisbane (+20.8%), Canberra (+14.4%), Hobart (+8.2%), Sydney (+7.1%), Darwin (+4.9%) and Perth (+0.6%).
The movement in the preliminary established house price index between December quarters 2006 and 2007 has been revised from an estimated increase of 12.3% to an increase of 13.8%.
 

 

The following information is sourced from http://www.propertyupdate.com.au who quote their source as www.residex.com.au

Median Property Values in each Capital City as at September 2007

2007 Sep Qtr Houses Growth PA 1997-2007   Units Growth PA 1997-2007
Sydney $579,000 8.25% $392,000 6.96%
Perth $505,000 14.38% $396,500 12.92%
Melbourne $453,500 10.65% $344,000 10.52%
Canberra $441,000 11.57% $337,000 11.05%
Brisbane $423,000 11.77% $315,000 9.37%
Darwin; $391,500 9.60% $293,000 8.26%
Adelaide $343,000 10.93% $258,000 10.98%
Hobart $340,500 12.34% $247,000 11.72%

The original source shows that 'houses" in the fastest growing City in the last year, grew by 17.87% and the slowest City grew by only 2.39%.

Median Property Values in each Capital City as at December 2007

2007 Dec Qtr Houses Growth PA 1997-2007   Units Growth PA 1997-2007
Sydney $584,500 8.16%   $400,000 6.95%
Perth $502,000 14.09%   $382,500 12.46%
Melbourne $480,000 11.13%   $355,500 10.80%
Canberra $452,500 11.65%   $351,000 11.42%
Brisbane $432,500 11.90%   $323,500 9.61%
Darwin $398,500 9.63%   $299,000 8.41%
Adelaide $353,000 10.97%   $268,000 11.32%
Hobart $344,500 12.29%   $237,500 11.14%

In 1984 the average property price in Brisbane was $59,000. In Dec 2007, 23 years later, it is now $432,500.  This works out at an average annual rise of 9.05%, and a doubling every 8 years.

If all properties grew by that average of 9.05% each year, from 1997, then expected prices in 2014 would be:

2014 - Houses
Sydney  $ 846,903
Perth  $ 773,186
Melbourne  $ 680,106
Canberra  $ 786,975
Brisbane  $ 591,850
Darwin  $ 604,995
Adelaide  $ 412,036
Hobart  $ 685,739

 

House Prices in Melbourne, Victoria:  (March 2008)

A Newspaper report for the March 2008 quarter showed the median price for a detached Melbourne home was now $432,500, down 8.4 per cent from the December 2007 median of $472,250.  However, this DOES NOT mean that all property in Melbourne has dropped in value. 

The report showed the median price for a detached Melbourne home in the March 2008 quarter was $432,500, down 8.4 per cent from the December 2007 median of $472,250

According to the report, the actual results in the individual suburbs varied between:

  • Blairgowrie [Mornington Peninsula] UP 18.4 per cent    ($475,000)
  • Berwick [South East] UP 13.6 per cent    ($344,000)
  • Essendon [West] DOWN 9 per cent    ($695,000) 
  • Wyndham Vale [West] DOWN 11.7 per cent    ($230,000)  *This one puzzles me, as in Sept 07 the value was shown as $217,000.

Brighton is Melbourne's most expensive suburb, with a median price of $1.68 million.
Melton at $211,000 is the most affordable suburb.

Looking at other reports, I see the following figures for the SIX MONTHS September 2007 to March 2008:

  • Inner Urban area of Melbourne
    • Houses went from $721,000 in Sept 2007 to $760,000 in Mar 2008 = UP 5.4%
    • Units went from $395,000 to $420,000
  • Mornington Peninsula area
    • Houses went from $345,000 in Sept 2007 to $370,000 in Mar 2008 = UP 7.2%
    • Units went from $288,000 to $298,000
  • South East
    • Houses went from $281,000 in Sept 2007 to $303,000 in Mar 2008 = UP 7.8%
    • Units went from $228,000 to $242,000
  • West
    • Houses went from $300,000 in Sept 2007 to $332,000 in Mar 2008 = UP 10.6%
    • Units went from $260,000 to $270,000

Confused about Melbourne House Prices?  It seems that prices are UP between Sept 2007 and March 2008, but prices are down (according to the newspaper) between Dec 2007 and Mar 2008.  Maybe December was artificially high ?

 

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