Regional house price growth outstrips Melbourne, Sydney

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Regional home values in NSW and Victoria have grown faster than in the capital cities as the combined value of Australian homes exceeded $10 trillion for the first time.

Data from the Australian Bureau of Statistics shows the total value of Australia’s 10.8 million residential properties increased by $221 billion in the first three months of the year.

Residential homes across the country are now worth a combined $10 trillion.Credit:Peter Rae

Over the year to March, the total value of homes swelled by $1.8 trillion to $10.2 trillion. The national median home price is now $941,000.

ABS head of price statistics Michelle Marquardt said regional price growth in NSW and Victoria has grown faster than in the capital cities.

“Over the past year, growth in median prices in regional NSW and Victoria has outpaced growth in their capital cities for both houses and attached dwellings,” she said.

Dwelling prices have been softening as banks started lifting interest rates on their variable and fixed-term mortgages, in response to the Reserve Bank’s move to lift the official interest rates from historic lows.

The official cash rate is now 0.85 per cent, up from 0.1 per cent after just two RBA moves in May and June.

Over the 12 months to March the median house price in Sydney rose 16.4 per cent to $1.25 million and in Melbourne, it rose by 9.4 per cent to $930,000.

However, median house prices in both capital cities have fallen since the December 2021 quarter: dropping $90,000 in Sydney and $105,000 in Melbourne.

In the regions, house prices have not faced similar drops. In the year to March, the median house price in regional NSW jumped 29.1 per cent to $800,300, and in regional Victoria it rose 17.4 per cent to $640,000. House prices in those regions have also eased since the December quarter, but only by $10,000 in NSW and $5000 in Victoria.

Brisbane saw the largest capital city price rise, with the median house price growing 29.3 per cent over the year to March to $787,500, followed by Canberra, where house values rose 28.3 per cent over that period to $1.07 million.

Perth experienced the slowest growth, with median house prices increasing 1.9 per cent to $550,000.

Tasmania saw the biggest jump in regional house prices, with values increasing 30 per cent over the year to $520,000.

NSW accounts for just over 40 per cent of the total value of homes, at $4.1 trillion, followed by Victoria with $2.7 trillion and Queensland with $1.7 trillion.

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