Canberra is now Australia's second most expensive property market, overtaking a Melbourne market that has been stung by reduced investor activity and extended COVID-19 lockdowns.
New data from property research firm CoreLogic shows Canberra now carries a median value of $672,866, overtaking Melbourne which sits at a close $672,172.
Sydney remains the most expensive property market in the country with a median value of $860,967.
READ MORE: Why Aussie property prices didn't crash in 2020
They are followed by Brisbane ($515,267), Hobart ($505,683), Perth ($463,846) and Adelaide ($459,896).
Darwin remains the cheapest capital city to buy a property in, with a median value of $405,857.
Nationally, the median value of a property in Australia – which includes both units and free-standing houses – is now $565,474. It rose 0.8 per cent in November.
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Property prices are now just a hair behind where they were prior to the pandemic.
"The national home value index is still seven tenths of a per cent below the level recorded in March, but if housing values continue to rise at the current pace we could see a recovery from the COVID downturn as early as January or February next year," said CoreLogic's Head of Research Tim Lawless.
"The recovery in Melbourne, where home values remain five per cent below their recent peak, will take longer."
READ MORE: The regional town where house prices boomed during COVID-19
Curiously, while houses are continuing to gain strongly – rising 1.1 per cent over the past three months – units fell by 0.6 per cent over the same period.
Mr Lawless theorises that a slow down in investor activity as well as a weaker rental market due to closed international borders are likely drivers of unit prices.
"This trend towards stronger conditions in detached housing markets is evident across most of the capital cities," Mr Lawless said.
"Relative weakness in the unit market can be attributed to factors including low investment activity, higher supply levels in some regions, and weaker rental market conditions across key inner city unit precincts."
READ MORE: Australia's interest rates plunge to record low
NAB Executive of Home Ownership Andy Kerr said property values in Australia were remarkably resilient during the worst of COVID-19.
"The housing market has held up better than anticipated and we're seeing sentiment shift rapidly," Mr Kerr said.
"In November, demand for NAB home loans was stronger than we've seen for more than two years. Applications over the past six weeks are up more than 25 per cent against the prior six weeks. Demand has been supported by record low rates, growing confidence in the economic recovery and strong government support measures."
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Mr Kerr said NAB anticipates record-low interest rates to be a driver of values for a number of years.
"We expect strong interest to continue given the likelihood of low rates for several years and as more stimulus measures come into effect from state governments. We're currently forecasting property price growth of upwards of 5 per cent in each of the next two years, with apartment prices likely to lag house price growth," Mr Kerr said.
"While risks remain due to the ongoing employment impacts of COVID-19 and a likely slowdown in population growth, today's data show house prices already have stabilised and at NAB we're seeing rising interest in regional areas in particular."
AUSTRALIA'S PROPERTY PRICES NOVEMBER 2020
|
City: |
Monthly change: |
Median value: |
|
Sydney |
+ 0.4 per cent |
$860,967 |
|
Melbourne |
+ 0.7 per cent |
$672,172 |
|
Brisbane |
+ 0.6 per cent |
$515,267 |
|
Adelaide |
+ 1.3 per cent |
$459,896 |
|
Perth |
+ 1.1 per cent |
$463,846 |
|
Hobart |
+ 1.4 per cent |
$505,683 |
|
Darwin |
+ 1.9 per cent |
$405,857 |
|
Canberra |
+ 1.9 per cent |
$672,866 |
|
National |
+ 0.8 per cent |
$565,474 |
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