Sydney and Melbourne Lead the Way as House Prices Continue to Rise

 Sydney and Melbourne Lead the Way as House Prices Continue to Rise

Property prices across Australia have risen by 1.6% in the March Quarter according to new figures, with Sydney and Melbourne unsurprisingly leading the charge.

New data released yesterday by the Australian Bureau of Statistics (ABS), has revealed that, despite the tricky start to 2020, with both the Bushfires and more recently the coronavirus outbreak, house prices have steadily risen in the previous quarter.

All of the country’s capital cities recorded a rise in residential property prices, however, Melbourne (2.1%) and Sydney (1.9%), saw the biggest increase in the first three months of the year.

Despite the positive results, experts are not surprised, as the full impact of restrictions were not felt until the end of March and therefore didn’t affect the property prices for the first quarter of 2020.

Estimates are in line with expectations. The majority of restrictions relating to COVID-19 came into effect in late March and therefore did not have a noticeable impact on property prices in the March quarter 2020.

ABS Chief Economist Bruce Hockman

Looking further back, over the last year, the average property price nationwide grew by 7.4%, with Perth and Darwin the only capital cities to not see an increase in property prices.

Unsurprisingly, the two leading cities were again Sydney and Melbourne, which both posted increases of over 10% in property prices in the last 12 months, with Sydney seeing a rise of exactly 10% and Melbourne seeing an impressive 10.4% increase.

The average house price in Australia is now up by $10,700 to $690,200 in the last quarter, with the total value of Australia’s residential dwellings rising by $141.6 billion in the last quarter and now standing at a staggering $7,237.1 billion.