Quick Bites | Aussie house prices stay high

The CoreLogic Capital City Dwelling Prices data revealed that Australian capital city house prices rose +0.8% month on month (mom) in May, marking the largest increase since October 2023. In seasonally adjusted terms, prices rose +0.7% mom, with monthly real house price growth (after factoring in inflation) turning positive for the first time in several months. Year on year prices were up 8.8%. 


Source: CoreLogic, Goldman Sachs 

Regionally, price growth rebounded in Sydney (+0.6% mom), equalling the prior record high in January 2022, but remained fairly subdued in Melbourne (+0.1% mom). Price growth remained strong in Adelaide (+1.8% mom) and Perth (+2.0% mom). 

In the rental market, CoreLogic noted national rents rose +0.7% mom in May (prior: +0.8% mom), marking the lowest monthly gain since December. CoreLogic noted “the trend towards a slowdown in rental growth can probably be attributed to an easing in net migration since the first quarter of 2023, as well as rental affordability pressures forcing a change in rental patterns.” 

On sales volumes, CoreLogic noted home sales were +2.8% above their level a year ago and +5.7% above the 5-year average, although total listings remained well below average. 


Source: CoreLogic, Goldman Sachs