Where you should buy now: The two cities where home prices HAVEN’T peaked and are tipped to surge 19% this year – and properties near the CBD are cheap
- House prices in Perth, Darwin are still below the 2014 peak from mining boom
- ANZ bank is predicting a 19 per cent increase in 2021 for West Australian capital
- These cities are among the third of Australian home markets not at a record high
Millennials struggling with record house prices can still find bargains in two Australian cities where values remain below previous peaks – but are set to surge in 2021.
In March, house prices hit all-time highs in 61 of Australia’s 88 sub markets but Perth and Darwin weren’t among them.
Median house prices in both capitals are still below the 2014 peak following the end of the mining boom.
CoreLogic’s head of research Eliza Owen said Perth house prices were still 15.9 per cent below the previous peak reached in June 2014.
Two major Australian cities still haven’t hit a property price record amid predictions one of them will see a 19 per cent surge in 2021 alone. Pictured is a two-bedroom house on the market at Stirling in Perth’s north west selling for $599,000
House prices rise everywhere
Sydney: up 4.3 per cent to $1,112,671
Melbourne: up 2.6 per cent to $859,097
Brisbane: up 2.6 per cent to $607,969
Adelaide: up 1.6 per cent to $518,692
Perth: up 1.8 per cent to $527,833
Hobart: up 3 per cent to $584,974
Darwin: up 1.9 per cent to $519,575
Canberra: up 3.3 per cent to $819,707
Source: CoreLogic Home Value Index for March 2021 on median house prices
Perth house prices fell by 2.2 per cent between April and July last year during the early months of the Covid shutdowns.
The recovery in the second half of 2020 meant house prices in the Western Australia capital were up 6.3 per cent over the year, following a 1.8 per cent rise in March.
The ANZ bank is predicting a 19 per cent surge in Perth prices in 2021 alone, putting it on par with the Sydney increases.
This would be even stronger than the forecast 17 per cent average rise across capital cities.
Perth’s median house price stood at $527,833, a level less than half Sydney’s equivalent $1.112million despite being the home of mining billionaires.
A six-bedroom house with six bathrooms in cosmopolitan Fremantle is on the market for $750,000.
A studio apartment in Fremantle is selling for $289,000 while a two-bedroom house at Stirling, 11km north-west of Perth, is on the market for $599,000.
Darwin’s mid-point price is $519,575, following a 16.3 per cent surge during the past year which was even stronger than Hobart’s 12.8 per cent pace and Canberra’s 13.9 per cent growth level.
Darwin’s mid-point price is $519,575, following a 16.3 per cent surge during the past year which was even stronger than Hobart’s 12.8 per cent pace and Canberra’s 13.9 per cent growth level. A three-bedroom house at Stuart Park, in Margaret Court less than 3km from the city centre, is on the market for $620,000
A three-bedroom house at Stuart Park, in Margaret Court less than 3km from the city centre, is on the market for $620,000.
Property prices since the end of 2020 have boomed after the Reserve Bank of Australia cut the cash rate to a record-low of 0.1 per cent.
Three of Australia’s major banks are offering fix mortgage rates of less than 2 per cent, which ANZ said was fuelling the house price boom.
‘Low mortgage rates are a key driver of the strength in the market, with fixed mortgage rates falling at more than double the rate of variable mortgages over the past year or so,’ ANZ economists Felicity Emmett and Adelaide Timbrell said.
‘Home buyers are taking advantage of these lower rates, flocking into fixed mortgages.’
A studio apartment in Fremantle is selling for $289,000
A six-bedroom house with six bathrooms in cosmopolitan Fremantle is on the market for $750,000