Housing prices in Australia skyrocketed and it is now one of the world’s most expensive countries to live in. Many analysts and agents predicted a drop in prices in 2023 but the nation’s real estate market is still going strong. Rising interest rates have only slightly impacted prices, with more of a plateauing than a slump.
This article details what you can expect to pay for an Australian home, with data provided for each capital city. It also looks at the median cost of a house in the nation’s regional towns. Using this information, readers can figure out whether purchasing an established three or four-bedroom home is within their means or whether a tiny house in Australia might be a better option. Small homes in Australia with only one or two bedrooms tend to be much more affordable, with mobile and off-grid tiny homes available.
For an idea of rental prices, check out this site, which lists properties in all corners of the country. It gathers private properties from across Australia, allowing users to compare and contrast what is on offer. Its uncomplicated search filters allow you to search based on location, property types, price and number of bedrooms. This trustworthy site is a convenient resource for not only long-term renters but also those on a journey to homeownership.
The median house price indicates the sale price of the middle home in a list of properties. To find out the median sale price of 51 properties, you would need to rank them from highest to lowest, then find the price of the 26th house on the list. This is the median price In contrast, the average house price is found by adding up all of the sales in a particular area and dividing them by the number of sales.
Generally speaking, the median house price is regarded as the more useful way of understanding current property prices as the average price can be significantly skewed by very high or very low sales. That being said, median prices can jump around from quarter to quarter and don’t always offer potential homeowners or investors an accurate indication of what a particular property is worth.
At the time of writing, the median dwelling for a house in Australia is roughly $750,000. However, this figure is slightly higher in capital cities (around $820,000) and lower in regional towns where the current median dwelling price is roughly $595,000. It’s important to be aware that property prices vary significantly around the country, with the median price in Sydney much higher than in Darwin, for example.
Currently, the median price of a house in Sydney is around $1,120,000, with the New South Wales capital leading Australia’s property boom from 2020 to 2021. While home values rose 27% during this period, they have cooled off around 12% since. Despite that, the city’s auction market has remained strong and analysts suggest that demand will continue. This is largely due to shortages in the rental market and a rebound in international migration following the pandemic border closures.
Canberra is Australia’s next most expensive city, with property prices around $842,000 in the nation’s capital. During the recent property boom, house prices grew more than 38%, largely driven by increased interest from investors, both Australian and international, and the lack of available land to build new dwellings.
With a median house price of $778,500, Melbourne comes in third, with the city’s property market not performing as well as some of Australia’s other capitals in 2023. During the 2020 to 2021 property boom, Melbourne house values rose around 21% while units increased by just over 10%. Analysts suggest that the relatively small increase in property prices seen throughout 2023 is due to affordability constraints associated with the recent boom and rising interest rates.
Brisbane comes in fourth with a median house price of $770,000. During the pandemic, the Queensland capital saw a 41% increase in property prices. While prices fell almost 9% since mid-2022, they have since increased 10% after reaching a low in January 2023. With its rapidly growing population, Brisbane’s housing supply is struggling to keep up with demand, hence the rising real estate prices.
One of the biggest surprises of the pandemic was the well-performing housing market of Adelaide. Although slow to get going compared to Sydney, Melbourne and Brisbane, it recorded a growth of 41% during the period. This was largely driven by the South Australian capital’s affordability and the relocation of people from densely populated East Coast cities. Today, Adelaide’s median house price is around $700,000, with low stock levels and plenty of competition suggesting it’s not going to drop anytime soon.
After remaining flat for much of the decade, Perth’s property prices rose 28% over the pandemic period and the city has a current median sale price of $632,000. Compared to many of Australia’s other capitals, Perth’s housing market is more susceptible to downturns due to the large energy and mining companies located in the city. As a result, investors are often wary of purchasing properties in Perth, helping to keep surges in housing prices at bay.
Well before the pandemic hit, Hobart was one of the best-performing property markets in Australia, with its relatively affordable stock attracting investors from interstate and abroad. After a rise of around 45% from 2021 to 2022, the Tasmanian capital saw a 12% dip in property values and is only slowly starting to recover. The median dwelling price in the city is currently around $662,000.
Of all Australia’s capital cities, Darwin remains the most affordable place to purchase a house in 2023, with a median price of $497,000. That being said, it also saw a significant rise in prices over the pandemic period, with a growth of around 27%. This is thought to be due to the city’s low-density population, which attracted people looking for room to move and a more laid-back lifestyle than what was on offer in Sydney and Melbourne.
Following the dramatic rise in Australian property prices, home ownership is becoming out of the reach of many. As a result, there is a growing number of people looking for more affordable alternatives, such as tiny homes and small houses in Australia. While they come with significantly less space, they offer greater financial freedom and some surprising benefits.
Compared to a traditional house, a sustainably built, eco-friendly tiny house is cheaper to build and requires less ongoing maintenance. It’s also much better for the environment, with less resources required for its construction leading to a much smaller carbon footprint. Many incorporate smart design features that help to reduce energy costs while the small size of tiny homes means less space to heat and cool.
As housing prices soar across the country and the costs of living are on the rise, there is increased interest in the services of tiny home builders. Many people are looking towards a simpler lifestyle, with a desire to work less and have more free time. As many will agree, tiny house living offers that freedom. It’s an opportunity to own a safe, modern and comfortable dwelling while having the time to do other things you love in life.
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