“When we get to 2029, we’ll see which states have made it and which have not,” said Property Council chief executive Mike Zorbas. “The act of measuring gives us a better understanding of why some states are succeeding and some failing.”
The Property Council estimates more than 60,000 new homes would need to be built every quarter to meet the existing target.
While demand has remained below average according to Cotality, advertised housing stock levels have also stayed low, coming in 5.8 per cent lower than the same time a year ago.
Cotality research director Tim Lawless said the rate cut in February was a clear turning point for house values, which dipped between November and January, and that they were likely to continue rising through the second half of the year.
“An additional cut in May, and growing certainty of more cuts later in the year have further fuelled positive housing sentiment, pushing values higher,” he said. “However, despite the prospect for lower interest rates, affordability constraints will likely temper the extent of a housing market upswing.”
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Lawless said the rebound remained mild compared to the middle of 2023 when quarterly growth hit 3.3 per cent, as the rate of home sales (4.1 per cent) during the quarter tracked below the decade-average of 5.1 per cent.
Regional Australian housing value growth outpaced the capital cities in the three months to June, but the past two months have seen the trend reverse, with Cotality noting it was increasingly likely that quarterly growth would once again favour capital cities over the coming months.
Hobart (down 0.2 per cent) was the only capital city or region to register a fall in home values in June, while Darwin led growth at 1.5 per cent, passing its last peak during the mining boom 11 years ago. Perth (up 2.1 per cent) and Brisbane (up 2 per cent) led the country’s quarterly growth alongside Darwin.
The median home value remains highest in Sydney at more than $1.2 million, followed by Brisbane at $926,000 and Canberra at $855,000.
Lawless said while home values had risen across the board, the pace of growth remained “mild” compared to the middle of 2023 when the quarterly growth rate peaked at 3.3 per cent. During the height of the pandemic, quarterly growth hit a peak of 8.1 per cent.
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