House prices rose across all capital cities in June, defying most expert predictions of declines following the recent RBA rate hikes. Prices jumped 1.1% across the month, led by Sydney and Brisbane.
Adelaide has maintained the top spot as the best performing capital city since 2020, reflecting the significant housing shortage in the city. Low stock levels, surging immigration and strong competition among buyers is contributing to upwards pressure on prices across Australia. The northern suburbs have performed best with price performance in Davoren Park (+20.3%) and Andrews Farm (+17.4%) topping all Adelaide suburbs over the past year.
Prices in Sydney have recovered 6.9% since the February trough and are set to rise over 10% this year if current momentum continues. Perth and Brisbane are the other capitals that are experiencing strong growth as immigration is fueling buying activity. In contrast, growth in Melbourne is beginning to weaken and momentum is slowing somewhat. Hobart has also seen declines recently, despite being one of the strongest markets over the past 2 years.