Perth house prices surge by a staggering 20 per cent in a year as immigration hits record high – here’s the ‘affordable’ market where prices climbed by more than $140,000

House prices in Australia’s capital cities have risen by up to 20 per cent in the past year as immigration reached an all-time high.

Property values ​​are now at record levels in Perth, Adelaide and Brisbane, while Sydney is just 1.4 per cent below its peak two years ago.

Despite rising interest rates, prices have soared by double digits in all of those cities in the year through March, new CoreLogic data released Tuesday showed.

Perth led the price rise, with average house prices rising almost $142,000 to $735,276, but all capital cities except Darwin and Hobart saw significant price rises.

Demand was driven by a record 548,800 migrants moving to Australia in the year to September, accounting for at least three-quarters of Australian cities’ population growth.

CoreLogic research director Tim Lawless said high immigration was causing a housing supply shortage, causing prices to soar despite the Reserve Bank raising interest rates 13 times in 18 months.

“The shortage of housing supply relative to demand continues to maintain upward pressure on home values ​​despite these headwinds,” he said.

“Housing remains scarce and purchasing demand remains high due to well above average rates of interstate and overseas migration.”

In Perth, the median house price rose 20 per cent over the past year to $735,276, but it remains Australia’s second most affordable mainland capital.

“If we focus on the extreme growth conditions in Perth, despite such a rapid pace of capital gains, house values ​​remain relatively affordable compared to larger capital cities,” Mr Lawless said.

Just a year ago, Perth had a median affordable home price of $593,385, but values ​​have since risen $141,891, including $16,716 in one month.

Perth was also Australia’s fastest growing capital during the last financial year, with population growth at 3.6 per cent due to strong interstate and overseas migration.

brisbaneanother major destination for interstate migration, has seen annual price growth of 15.9 percent, bringing the average price to $909,988.

Prices rose $137,968 over the year and $10,514 in one month in a city with a population growth rate of 3.1 percent.

Sydneythe city that receives the largest number of foreign immigrants, saw the median house price soar 10.7 percent over the year to $1,414,229, an increase of $183,648 year-on-year, including an increase of $18,425 in one month.

Despite the increase, house prices in Australia’s most populous city are still 1.4 per cent below their January 2022 peak.

In MelbourneDespite significant overseas migration, home prices there over the past year only rose 3.3 percent to $935,049, and even fell 0.1 percent in March.

Melbourne is still 4.1 per cent below the peak reached in March 2022, before the Reserve Bank raised interest rates 13 times between May 2022 and November 2023 to a 12-year high of 4 .35 percent.

Adelaide‘s The median home price has increased 13.2 percent over the past year to $785,971, which translates to an annual increase of $90,973 and a monthly increase of $6,057.

But turbocharged house prices were not universal, with hobartAustralia’s median price rose just 0.9 per cent over the past year to $692,951, making it Australia’s cheapest state capital market.

Tasmania’s capital also had the weakest population growth in Australia, at 0.5 per cent.

DarwinAustralia’s most affordable capital, had the weakest annual price increase of just 0.4 per cent, taking the average price to $573,498.

CanberraIn , Australia’s second most expensive city, the median house price rose 2.5 per cent over the year, to $964,136.