Australia Housing Market Report: March 2022

Property prices across Australia have experienced an impressive boom in recent years. Despite the challenging economic period we are living through, Australia’s property prices seem unaffected by the downturn. 

Instead, the median property prices in some areas of the country are reaching $2 million, such as Sydney and Melbourne. However, purchasing a home in Australia is not an impossible endeavour—Perth and Darwin are far more affordable. Let’s look at this month’s housing report. 

March 2022 Housing Market Australia Summary

According to the ABS housing report, Australia’s property prices have risen by an impressive 23.7% in the last twelve months. In March 2022, we’re seeing property prices level out as we head into the fall. Australia’s two biggest cities are shifting towards a buyer’s market while the rest of the capital cities remain in the sellers’ hands.

Below you’ll find this month’s housing update, with median property prices, lending indicators, and insights from the experts.

Australia Housing Market Report: March 2022

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March's Median Property Prices

New South Wales

In New South Wales, Sydney’s median house price is $1,751,140 for March 2022, a 1.2% decrease from February’s property values. Despite experts predicting we would begin to see Sydney’s record-high prices decrease in 2022, we’re yet to see the reality. The drop is marginal. However, home buyers might expect to pay $21,797 less for a house than in February 2022. 

Sydney house prices remain over a million dollars more expensive than the national average. Meanwhile, units in Sydney tell a different story. Units have increased 0.3% since last month, averaging $718,601. 

The most expensive suburbs in Sydney for March 2022 include: 

  • Tamarama
  • Centennial Park
  • Vaucluse.

Victoria

In Melbourne, the median price for all dwellings is $964,337, a 0.9% increase since last month. Houses are up 1.3% since February, averaging $1,171,335. 

However, three-bedroom houses are actually dropping in price. A home buyer could expect to pay $1,079,604 for a three-bedroom house in Melbourne, a drop of 0.2%. Although, the last few days of March have seen a slight uplift week on week.

Meanwhile, units remain pretty stable at $581,461 with a 0.5% increase. Melbourne remains the second most costly city to purchase property in Australia. 

The most expensive suburbs in Melbourne for March 2022 include:

  • Toorak
  • Kooyong
  • Brighton

Queensland

Brisbane’s property prices have sharply risen since the beginning of winter last year. Month on month, house prices are up by 2.2%. Since March 2021, the median house price change in Brisbane is an incredible 33.9%. Today, you might expect to pay $897,326 for a house in Brisbane. However, the week ending 29th March has seen a steep drop of 3.4% since last week.

Unit prices have increased at a steadier rate over the last year. As of March 2022, the median unit price is $435,727, a 1.3% rise. According to the ABS, Brisbane has seen the most extensive price rise out of all the capital cities across Australia. 

The most expensive suburbs in Brisbane for March 2022 include:

  • Ascot
  • Chandler
  • Hawthorn
Australia Housing Market Report March 2022

South Australia

In Adelaide, the average house price is currently $688,222, up 25.7% year on year and 0.4% since February. We have seen house values level out in the first few months of 2022. 

On the other hand, unit prices have remained steady over the last ten years. Today, you might expect to pay $333,573 for a unit in Adelaide. This is 1.4% up from last month but only a 3.1% increase from March 2021. The number of sales in Adelaide is the highest since 2002, suggesting demand might only push prices further. 

The most expensive suburbs in Adelaide for March 2022 include:

  • Medindie
  • Springfield
  • Leabrook

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Western Australia

Houses and units in Perth remain relatively affordable. Up by 0.9%, house prices are more stable in Western Australia than in other states. In fact, since this time last year, house prices have only increased 11.8%, a far more marginal rate than we’ve seen in the likes of Queensland and New South Wales. Today, you could expect to pay $747,956 for a house in Perth. 

All units are up 0.8%, while two-bedroom units are down 0.7%. The average price of a unit is $399,334—an increase of 2.5% year on year.

The most expensive suburbs in Perth for March 2022 include:

  • Dalkeith
  • Cottesloe
  • Nedlands
Australia Housing Market Report: March 2022

Northern Territory

Like Western Australia, the Northern Territory’s property market has not exploded so dramatically in the last few years. In fact, Darwin house prices have only begun their upward trajectory since last winter. Today, the average house price in Darwin is $657,914, making it one of the more affordable capital cities. Houses are up 0.7% from February 2022. 

Meanwhile, units cost $360,347, a 0.1% increase from last month. However, the 12-month trend shows unit properties are down by 7%. Two-bedroom units saw their highest prices in July 2021 and cost $352,576 today.

The most expensive suburbs in Darwin for March 2022 include:

  • Nightcliff
  • Larrakeyah
  • Stuart Park

Tasmania

As with most Australian states, Tasmania’s property prices have rocketed sharply since March 2020. Two years later, house prices are around $20,000 more expensive. The average house price in Hobart sits at $750,656, up 3.1% since February 2022. Unlike in New South Wales and Victoria, house prices are yet to begin levelling out. 

Units have also risen at a similar pace, up 18.6% since last year. The average buyer could expect to pay $476,085 for a unit in Hobart. However, two-bedroom units are down 4.8% since February at $517,609.

The most expensive suburbs in Hobart for March 2022 include:

  • Taroona
  • Dynnyrne
  • Mount Stuart

Australian Capital Territory

In the ACT, house prices have shot up over the last six months. However, in March 2022, houses are down 1.8% month on month. The average home in Canberra will cost you $1,077,574. Meanwhile, a unit costs $518,341—about half the cost of a house. House prices have increased 29.4% since last year, and apartments are up 9.5%.

The most expensive suburbs in Canberra for March 2022 include:

  • Griffith
  • Red Hill
  • Yarralumla
Australia Housing Market Report: March 2022

Expat Housing Market

While the lack of international movement has slowed Australia’s foreign buyers’ market, experts predict that the renewed travel might see an uptake in luxury properties. 

Fully vaccinated Aussie citizens and permanent residents can travel overseas and return to Oz without an exemption. Experts note pent up demand for Australian properties in NSW and Victoria, potentially driving prices further.

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Rental Prices Across Australia

The average asking rent prices for all Australian capital cities is $638 per week for houses and $457 for all units, up 2.2.% since February. The most expensive city to rent in is NSW, with Sydney’s weekly asking rents for houses reaching $787 a week in March 2022. Meanwhile, the cheapest city to rent a house in is Adelaide, with weekly rents of $505.

What the Experts Are Saying

Tim Lawless, CoreLogic: “Virtually every capital city and major rest-of-state region has moved through a peak in the trend rate of growth sometime last year or earlier this year. The sharpest slowdown has been in Sydney, where housing prices are the most unaffordable, advertised supply is trending higher, and sales activity is down over the year.”

Gareth Aird, CommBank: “While we saw home prices rise last year by an incredible amount when interest rates begin rising, it is likely going to result in prices going lower. In Australia’s case, rates will be going up because wages are increasing, unemployment is low, and inflation is higher,”

Australia House Market Forecasts March 2022

Property prices will probably continue rising throughout 2022, but not consistently throughout the country. NSW and Victoria have likely already reached their peak. Moreover, we’re unlikely to see the exact extent of growth as we have the last few years. 

While the pent up demand of domestic Australians is waning, expats and foreign buyers are pushing demand as international borders relax. This year, the big four banks predict slight growth—between 3-9%—before dropping and stabilising in 2023.

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