Where house prices have fallen and risen by the most across Australia over the past three months
The Australian property market has become a stomach-churning game of swings and roundabouts that still sees prices soar for homes in some areas – and dropping steeply in others.
If you fancy an apartment in the NSW south coast idyll of Coffs Harbour, for instance, you might be in luck, with the median price falling 10.8 per cent over the last quarter. But if your dream escape is to a house in the sleepy Riverina town of Tumut, you’ll have to fork out an extra 15.6 per cent.
Similarly, in Victoria, bargain-hunters could eye a house by the sea in Melbourne’s Hobson’s with an 8.2 per cent price drop, while a unit in the Latrobe Valley in Gippsland will cost a hefty 14 per cent more than it did three months ago.
And in Queensland, the price of a house in Innisfail, 85 kilometres south of Cairns, has gone down by 5.7 per cent, just as a house in the north of Brisbane has jumped by 11.7 per cent.
Trying to make sense of it all is pretty tricky, says Domain chief of research and economics Dr Nicola Powell.
“But mostly, the areas that have had the biggest increases are the regional areas or in the stronger markets of Adelaide and Brisbane,” she said.
“I see affordability being the main driver of the market at the moment. Those regional medians, like in the NSW’s Hawkesbury, are still significantly lower than those in Sydney, and so a lot of buyers are choosing affordable areas, so those prices are holding up.
“In Sydney and Melbourne, houses have tended to see the biggest falls, while units often hold up better, and we’re seeing premium areas losing more value. Many of the areas that have had the biggest growth are starting to show the biggest price drops. That could be a mix of affordability and more localised circumstances, like more stock coming onto markets.”
| State | SA3 region | Property type | June-22 | Mar-22 | Quarterly change |
| NSW | Coffs Harbour | Unit | $495,100 | $555,000 | -10.8% |
| ACT | Woden Valley | Unit | $529,000 | $590,000 | -10.3% |
| South Australia | Unley | Unit | $447,699 | $495,000 | -9.6% |
| NSW | Leichhardt | Unit | $992,000 | $1,095,000 | -9.4% |
| Victoria | Hobsons Bay | House | $1,003,000 | $1,092,500 | -8.2% |
| NSW | North Sydney – Mosman | Unit | $1,200,000 | $1,300,000 | -7.7% |
| ACT | Molonglo | Unit | $565,000 | $610,000 | -7.4% |
| Victoria | Stonnington – West | House | $1,950,000 | $2,105,000 | -7.4% |
| NSW | South Coast | Unit | $495,000 | $533,500 | -7.2% |
| WA | Cottesloe – Claremont | Unit | $475,000 | $510,000 | -6.9% |
| Victoria | Manningham – West | Unit | $604,444 | $647,500 | -6.6% |
NSW
In NSW, tiny Tumut, in the state’s south-east, at the northern approach to the Alps, is in high demand because it’s seen as a great regional sea change, only an hour to Wagga Wagga for all the big-city facilities.
“It’s a lovely town, and we have Coles and Woolies as well as a few little shops,” said Jarrod Matchowitz of Ray White Tumut.
“A lot of people are moving here, and it’s much cheaper than Sydney.”
The median house price is still just $445,000 even after that 15.6 per cent quarterly rise, with properties for sale like a four-bedroom house on nearly 20 hectares at 150 Wallaby Lane for $799,000.
The Hawkesbury area has seen a similarly steep median price rise of 13.1 per cent over the June quarter to a new median of $1.065 million.
“We’re still country, but we’re only 90 minutes away from the Sydney CBD,” said Trent Iverson of Valla Iverson. He is selling an architect-designed artist’s retreat at 1515 St Albans Road, Central Macdonald, on 24 hectares for $770,000 to $790,000.
“COVID meant people wanted to get out of the cities, and they discovered the beauty here, but now they’re being called back to work; they can still commute from this area.”
Meanwhile, the median price of houses in Coffs Harbour has lifted 10.9 per cent to $610,000.
However, the most significant property price falls were of its units, down 10.8 per cent to $495,100, as well as units in Leichhardt which went down 9.4 per cent to $992,000 and units in Mosman down 7.7 to $1.2 million.
In Coffs, Yvette Ward of Florent & Mundey said the sea change frenzy had left the market, and now those having to borrow money were finding it harder to raise funds.
“Interest rate rises have affected them, there’s more supply on the market, and the crazy pricing that came from desperation isn’t there anymore.”
Of the inner west suburb of Leichhardt, David Eastway of Hudson McHugh says that, with its smaller homes on less land and its much bigger number of dwellings than neighbouring suburbs, it means it’s often a bellwether suburb.
“We have a huge turnover, so when the market goes up, we go up with it, and when it goes down, we’re among the first to fall,” he said.
VICTORIA
Victoria’s most significant price jump was for units in the Latrobe Valley in Gippsland.
Their median rose 14 per cent to a new median of $285,000. A two-bedroom unit is for sale for $388,000 at 2/30 Swallow Grove, Traralgon, by Keith Williams Real Estate’s James Hourigan.
“Regional Australia has gone up everywhere,” he said. “Traralgon is still very cheap compared to many other regional centres, and units are attractive because they can be affordable. In addition, rents are going up so much, that some people decide to buy, and go for a unit as they can afford that easier than a house.”
The second steepest price rise over the quarter, at 9.3 per cent to a median of $541,000, was for houses in East Gippsland not far away, with many Melburnians still buying property.
According to Sean Sabeli of O’Brien Real Estate, selling a four-bedroom house at 345 Main Street, Bairnsdale, the reason is simple: “It’s the best place in the world!” he said.
“It’s also closer to the city than it’s ever been – just over three hours to the MCG — with the highway completed, cars easier to drive and a good train ride.
“Three or four years ago, we couldn’t get any buyers for high-end houses, but people from Melbourne and the metropolitan area are not shy about spending more.”
The next highest rise was for houses in Shepparton in northern Victoria, which rose by 6.5 per cent to $490,000.
The fall in prices were almost as dramatic. Houses in Hobsons Bay in Melbourne’s west, just 15 minutes from the CBD, fell in price by 8.2 per cent.
Prices were rising too high, too fast, says Mancini Real Estate agent Samuel Spiteri, so this is the correction we had to have.
“People were struggling, especially first home buyers and families,” said Spiteri, who’s now selling a three-bedroom house at 2/15 Hancock Street, Altona, for $795,000-$850,000.
“So now people have a better opportunity to buy. It’s good news also for downsizers and upsizers, and investors.”
House prices in Stonnington west are also down by 7.4 per cent, to a median of $1.95 million.
Andrew Hayne of Marshall White Stonnington said, “It’s across the board. We’re now getting back to a normal market.”
He’s selling a three-bedroom house at 41 Motherwell Street, South Yarra for $2.75 million to $3 million.
QUEENSLAND
In the Sunshine State, the biggest price hike happened with units in the Bald Hills-Everton area of Greater Brisbane, whose median rose 11.7 per cent to $497,250.
Rohan Dove of Image Property Northside is selling a two-bedroom unit at 3/21 Grasspan Street, Zillmere, for offers over $350,000 and says the area is immensely attractive.
“It’s so affordable, and it’s close to the city, just 20 minutes to the CBD,” he said. “For $350,000 or $400,000, you can still get something built in 2014 or 2015, and it’s quite upmarket.”
Other big movers upward were units in Beenleigh, in the city of Logan, up 10.7 per cent, and units in Hervey Bay, on the Fraser Coast, three and a half hours north of Brisbane, rose by 10.5 per cent.
Conversely, houses in Innisfail on the Cassowary Coast, 80km south of Cairns, experienced the biggest price falls of 5.7 per cent to a median of $330,000.
“We copped a flogging in Cyclone Larry in 2006 and then with Yasi in 2011, and prices stayed down for a long time,” said Ronnie Neary of Innisfail First National.
“But then during COVID, I’ve never seen so many Victorians up here in my life, and prices shot up and only now are they cooling.” He’s selling a three-bedroom house at 115 Ernest Street for $260,000.
Elsewhere in Australia:
SOUTH AUSTRALIA
Biggest median price rise – units on Kangaroo Island up 12.5 per cent to $315,000.
Biggest median price fall – units in Adelaide’s Unley down 9.6 per cent to $447,699.
TASMANIA
Biggest median price rise – houses on Bruny Island up 12.7 per cent to $650,000.
Biggest median price fall – units in inner Hobart down 5.1 per cent to $665,000.
WESTERN AUSTRALIA
Biggest median price rise – units in Wanneroo, Perth, up 10.9 per cent to $355,000.
Biggest median price fall – units in Cottesloe, Perth, down 6.9 per cent to $475,000.
NORTHERN TERRITORY
Biggest median price rise – units in Palmerston up 5.0 per cent to $315,000.
Biggest median price fall – houses in Palmerston down 0.9 per cent to $540,000.
| State | SA3 region | Property type | June-22 | Mar-22 | Quarterly change |
| NSW | Tumut – Tumbarumba | House | $445,000 | $385,000 | 15.6% |
| Victoria | Latrobe Valley | Unit | $285,000 | $250,000 | 14.0% |
| NSW | Hawkesbury | House | $1,065,000 | $941,250 | 13.1% |
| Tasmania | Huon – Bruny Island | House | $650,000 | $577,000 | 12.7% |
| South Australia | Fleurieu – Kangaroo Island | Unit | $315,000 | $280,000 | 12.5% |
| Victoria | Loddon – Elmore | House | $405,000 | $362,500 | 11.7% |
| QLD | Bald Hills – Everton Park | Unit | $497,250 | $445,000 | 11.7% |
| QLD | Whitsunday | House | $584,000 | $525,000 | 11.2% |
| Tasmania | Devonport | Unit | $380,000 | $342,000 | 11.1% |
| WA | Wanneroo | Unit | $355,000 | $320,000 | 10.9% |
| NSW | Clarence Valley | House | $610,000 | $550,000 | 10.9% |
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