Melbourne's house prices have skyrocketed 13.1% over the past 12 months and yet they're still the slowest gainers on the Australian market.
Melbourne house prices rose to a median value of $769,968 by the end of August, according to the newest data released by CoreLogic.
That means that the median house price in Melbourne has risen by around $100,000 in the last 12 months alone, while Australian wages over that same timeframe have risen by just 1.7%.
You can check out our unpacking of the rent vs buy debate here.
What you need to know
- Melbourne house prices have risen 13% over the past 12 months
- Lockdowns are pushing house prices higher due to its effect on spending restrictions
- Melbourne house prices are still the slowest growing in Australia among capital cities
Stay up to date with what’s happening in Melbourne here.
What makes the rise even more spectacular is that Melbourne has spent half-a-year in lockdown since June 2020, with CoreLogic analysts admitting that lockdowns are part of the problem.
The Australian economy grew to the end of the June quarter, and many analysts believe that because higher-wage earners have been able to continue working during lockdown, yet have seen their ability to spend highly restricted, this is pushing house prices higher.
Melbourne was the slowest growing market in Australia, with Sydney house prices rising by 20% over the same period, and Darwin and Canberra rising by 22%. Darwin is now the only Australian capital city with a median house value under $500,000.
There is also an emerging issue around supply and demand, with new house listings plummeting nationally in August despite the price rises. Since the pandemic began, Australian house prices have risen more than 15%.
“Housing prices have risen almost 11 times faster than wages growth over the past year, creating a more significant barrier to entry for those who don’t yet own a home,” CoreLogic research director Tim Lawless told the ABC.
“Lockdowns are having a clear impact on consumer sentiment, however to date the restrictions have resulted in falling advertised listings and, to a lesser extent, fewer home sales, with less impact on price growth momentum.
“It’s likely the ongoing shortage of properties available for purchase is central to the upwards pressure on housing values.”
Check out CoreLogic’s entire dataset on Australian house prices here, if you dare.