Housing values across Australia rose again in August, marking the strongest month-on-month growth since May 2024.
According to Cotality, the national average house value increased by 0.7 per cent, while Adelaide recorded the sharpest rise at 1.2 per cent. Overall, housing values have grown 4.1 per cent so far this year, driven largely by a shortage of supply.
Cotality estimates that housing supply remains about 20 per cent below average for this time of year, traditionally one of the busiest periods in the property market.
“Once again we are seeing a clear mismatch between available supply and demonstrated demand, placing upwards pressure on housing values,” said Tim Lawless from Cotality.
In Sydney, prices rose modestly by 0.8 per cent last month and 2.1 per cent over the year, but the city continues to lead the nation with a median house price of about $1.2 million.
Brisbane, Perth, and Darwin each posted gains of at least 1 per cent, while Hobart was the only major city to record a decline, with values falling by 0.2 per cent.
Lawless noted that while housing values are likely to continue rising—particularly if interest rates keep falling—growth will be more sustainable than the surge seen during the pandemic.
“I would be surprised if we saw the monthly rate of change in national values return to earlier cyclical peaks, given how stretched housing affordability has become,” he said. “What is more likely is that home values will rise at a more sustainable pace, with demand dampened by affordability constraints, more normal rates of population growth, and cautious lending policy.”
