Rate increases would likely have a substantial impact on how long it would take for house prices to double.
According to PropTrack’s Market Insight, median house price nationally had doubled in 185 months or 15.4 years while median unit price increased two-fold in 213 months of 17.8 years in May 2023.
PropTrack director for economic research Cameron Kusher said while property prices have risen significantly since the onset of the pandemic, it has taken several years for median prices to double to the current values across most parts of the country.
“Rising interest rates and much higher prices, along with other economic and demographic factors, will weigh on the prospects of prices doubling in the future,” he said.
In terms of property type, houses in capital cities have seen their median prices doubled quicker than those in regional areas, at 14.3 years versus 16 years, respectively.
The case was different for units — those in regional markets saw prices doubled faster at 17.8 years than in capital cities at 18.1 years.
“Median price increases for houses are typically stronger than units, particularly in capital cities — in fact, house prices have doubled sooner than unit prices across all capital cities and regional markets,” Mr Kusher said.
Across regions, Hobart logged the quickest time for prices to double for both houses and units at 6.8 years and 7.8 years, respectively.
Overall, very few markets were able to double their prices in seven to ten years despite the strong price gains throughout the pandemic.
“This highlights that as the cost of housing has increased, the percentage gains in prices have reduced,” Mr Kusher said.
Time for median prices to double - Houses
|
Region |
Median House Price – May 2023 ($) |
Years to double |
|
Sydney |
1.31m |
9.6 |
|
Melbourne |
880,000 |
13.1 |
|
Brisbane |
755,000 |
15.6 |
|
Adelaide |
670,000 |
15.1 |
|
Perth |
563,000 |
17.8 |
|
Hobart |
720,000 |
6.8 |
|
Darwin |
585,000 |
16.7 |
|
ACT |
950,000 |
13.1 |
|
Capital Cities |
825,000 |
14.3 |
|
Rest of NSW |
720,000 |
9.4 |
|
Rest of Victoria |
587,000 |
9.6 |
|
Rest of Queensland |
550,000 |
17.8 |
|
Rest of South Australia |
350,000 |
17.2 |
|
Rest of Western Australia |
435,000 |
17.5 |
|
Rest of Tasmania |
530,000 |
5.8 |
|
Rest of Northern Territory |
475,000 |
16.3 |
|
Regional Areas |
582,500 |
16.0 |
|
National |
730,000 |
15.4 |
Time for median prices to double - Units
|
Region |
Median Unit Price – May 2023 ($) |
Years to double |
|
Sydney |
749,999 |
17.3 |
|
Melbourne |
600,000 |
16.5 |
|
Brisbane |
473,000 |
18.9 |
|
Adelaide |
432,000 |
16.8 |
|
Perth |
395,000 |
19.2 |
|
Hobart |
545,000 |
7.8 |
|
Darwin |
380,500 |
17.6 |
|
ACT |
585,000 |
18.9 |
|
Capital Cities |
580,000 |
18.1 |
|
Rest of NSW |
580,000 |
131 |
|
Rest of Victoria |
412,500 |
13.8 |
|
Rest of Queensland |
530,000 |
18.3 |
|
Rest of South Australia |
300,000 |
17.9 |
|
Rest of Western Australia |
319,000 |
18.6 |
|
Rest of Tasmania |
400,000 |
14.5 |
|
Rest of Northern Territory |
353,000 |
17.8 |
|
Regional Areas |
510,000 |
17.5 |
|
National |
560,000 |
17.8 |
Need help with a home loan?