>
House prices in some suburbs of Australia are soaring despite a property crash and rising interest rates.
Median house prices rose from July to September in several suburbs of Sydney and Melbourne, as well as in some parts of Hobart and Brisbane.
The findings were revealed in PropTrack’s latest Home Price Index September 2022 report of property data.
It found that while price declines were widespread in general, the rate of falling values had slowed and that in some suburbs, house prices had even risen.
The Melbourne suburb of Oakleigh has seen house prices rise more than any other suburb in the city
In Sydney, Rouse Hill, 43 kilometers northwest of Sydney’s central business district, saw the largest increase in the period, with house prices rising 24.08 percent
National prices fell by only 0.19%, the smallest price drop since national prices started falling in April 2022.
Sydney and Melbourne, which were the largest price declines across the country, saw the declines ease.
Regional areas in South Australia and Tasmania, however, continue to brave national declines, with new price spikes in September.
In NSW, buyers pay an average of more than $100,000 more than in June.
The suburbs where value continued to grow were mostly in cheaper western areas or eastern areas where prices were lower than neighboring areas, according to PropTrack data.
Most areas that saw increases also failed to see prices rise as Covid lockdowns and bottom interest rates sparked an unprecedented price hike last year.
Rouse Hill, 43 kilometers northwest of Sydney’s central business district, saw the highest increase in the period, with house prices rising 24.08 percent.
Quakers Hill saw prices rise 17.98 percent, Edmondson Park units rose 14.14 percent and Melonba prices rose 12.09 percent.
“Affordability is a key driver in this market,” said PropTrack economist Paul Ryan. ‘If the rates rise and people’s borrowing power has fallen, they will go for what is still affordable.’
PropTrack revealed that 18 suburbs in Hobart showed positive growth in the September quarter. They were led by Kingston Beach with a 19.06 percent change
Other areas that saw growth included the new suburbs of Blacktown, Nirimba Fields and Melonba, where house prices rose 6-12 percent.
Homes in these suburbs were about $200,000 cheaper than the Sydney average.
Meanwhile, just over three-quarters of suburbs had a decline in home values and more than 90 percent in unit values.
In Melbourne, median house prices rose in 279 suburbs from July to September.
Oakleigh led the list with an increase of 6.2 percent, followed by Belgrave Heights at 5.66 percent and Hughesdale in the southeast of the city with 5.64 percent.
PropTrack senior economist Eleanor Creagh said the larger size of real estate in some high-performing suburbs contributed to their popularity.
“Since the start of the pandemic we have seen the preference shifts continue, many people are looking for bigger houses, bigger block sizes and more space,” said Ms Creagh.
Meanwhile, Hobart was the only capital where prices rose 0.05 percent in September, while the combined capitals fell 0.22 percent.
PropTrack revealed that 18 suburbs in Hobart showed positive growth in the September quarter.
They were led by Kingston Beach with a 19.06 percent change and Margate with 18.8 percent.
In SA, 113 cities and suburbs have recorded median home price growth over the past three months.
Seven of the report’s top 10 locations were outside the metropolitan city of Adelaide, with homes in Cleve posting the largest home value increase in the state in the last quarter.
The median home price rose 24.14 percent to $256,556.
The state’s other big winners in the quarter were Streaky Bay, which posted a median home price increase of 17.08 percent, Peterborough 9.69 percent, Morgan 8.70 percent, Ceduna 8.21 percent and Quorn 8. 18 percent.
Lewiston, a semi-rural suburb, was the state’s largest urban achiever, and home prices rose 23.99 percent.
Hewett, Two Wells and Willaston were the other top performing home areas in Greater Adelaide.
“SA’s housing market has performed relatively better, benefiting from population flows, relative affordability advantages and remote working trends,” said Ms Creagh.
“We’ve also seen preference shifts since the start of the pandemic, with people wanting bigger houses and bigger block sizes,” she said.