The Australian housing market upswing continued in the first month of 2024 with property values rising 0.4%. As house prices rose, renters continued to feel pain, with the national rental index recording its biggest monthly rise since April. Rents were up 0.8% in January after a 0.65% rise in December.
The 0.4% increase in home values, according to data group CoreLogic, marked the 12th straight month of value rises, and was up from the 0.3% increases in November and December.
Despite the headline result, housing market performance remained varied around the country. Three capitals recorded a subtle decline over the month (Melbourne -0.1%, Hobart -0.7% and Canberra -0.2%), while, Perth, Adelaide and Brisbane values continued to rise at the monthly rate of 1% or more.
House values continued rising at a faster rate to unit values in January, with the gap between the median capital city house and unit values at a record high of 45.2%.
Across the combined capitals, detached housing values rose by half a per cent over the month, adding the equivalent of about $4,800 to the median house value while units increased a smaller 0.1%, equivalent to a $900 lift.
Regional markets were now showing a stronger trend in value growth relative to the capital cities. The combined regional index rose 1.2% over the rolling quarter compared with a 1.0% rise across the combined capitals index.
Despite worsening housing affordability, the volume of home sales held slightly above average over the past three months. CoreLogic estimated there were 115,241 dwellings sold over the three months ending January; 11.9% higher than the same period last year and 0.5% above the previous five-year average for this time of the year.
Similar to housing values, Perth led the pace for rental growth over the rolling quarter, with unit rents topping the list with a 3.7% rise over the three months ending January.
While Canberra and Hobart had recorded weaker rental conditions over the past year, Darwin was the only capital city to record a decline in rents over the rolling quarter, with unit rents down 1.6% and house rents falling 0.4%.
