House prices in some Australian suburbs are rising despite falling property prices and rising interest rates.
Median house prices increased in several suburbs of Sydney and Melbourne from July to September, as well as in some areas of Hobart and Brisbane.
The findings were revealed in the latest House Price Index report for September 2022 from real estate data company PropTrack.
It found that while price declines were broad-based overall, the pace of falling values had eased, and some suburbs had even seen home prices rise.
The Melbourne suburb of Oakleigh saw house prices rise more than any other suburb in the city.
In Sydney, Rouse Hill, 43 kilometers north-west of Sydney’s central business district, saw the largest increase in the period, with house prices rising 24.08%.
Domestic prices were down just 0.19 percent, the smallest price drop since domestic prices started falling in April 2022.
Sydney and Melbourne, which have led price declines across the country, saw softer declines.
However, regional areas in South Australia and Tasmania continue to defy national declines, reaching new price peaks in September.
In NSW, buyers are paying an average of more than $100,000 more than in June.
Suburbs where values continued to grow were mostly in cheaper western areas or eastern areas where prices were lower than neighboring areas, according to PropTrack data.
Most of the areas that saw increases also didn’t see prices skyrocket as Covid lockdowns and rock-bottom interest rates fueled an unprecedented price boom last year.
Rouse Hill, 43 kilometers northwest of Sydney’s central business district, saw the highest increase in the period, with house prices rising 24.08 per cent.
Quakers Hill prices increased 17.98%, Edmondson Park units increased 14.14%, and Melonba prices increased 12.09%.
“Affordability is a key driver in this market,” said Paul Ryan, an economist at PropTrack. “As rates go up and people’s borrowing power shrinks, they opt for what’s still affordable.”
PropTrack revealed that 18 suburbs in Hobart posted positive growth in the September quarter. They were led by Kingston Beach with a variation of 19.06 percent.
Other areas that saw growth included the new suburbs of Blacktown, Nirimba Fields and Melonba, where home values rose 6 to 12 percent.
Houses in these suburbs were around $200,000 cheaper than the Sydney average.
Meanwhile, just over three-quarters of suburbs had a drop in home value and more than 90 percent had a drop in unit value.
In Melbourne, median house prices increased in 279 suburbs from July to September.
Oakleigh topped the list with a 6.2 percent increase, followed by Belgrave Heights at 5.66 percent and Hughesdale in the city’s southeast at 5.64 percent.
PropTrack Senior Economist Eleanor Creagh said larger property sizes in some high-performing suburbs were contributing to their popularity.
“We have seen preference shifts continue since the start of the pandemic, with many people looking for bigger houses, bigger blocks and more space,” said Ms Creagh.
Hobart, meanwhile, was the only capital city where prices rose in the month of September, up 0.05 percent, while the capitals combined fell 0.22 percent.
PropTrack revealed that 18 suburbs in Hobart posted positive growth in the September quarter.
They were led by Kingston Beach with a change of 19.06 per cent and Margate with 18.8 per cent.
In SA, 113 cities and suburbs saw median house price growth over the past three months.
Seven of the top 10 locations in the report were outside the Adelaide metropolitan area, with homes in Cleve seeing the biggest increase in home values in the last quarter statewide.
The median home price increased 24.14 percent to $256,556.
The state’s other top gainers in the latest quarter were Streaky Bay, which saw an average home price increase of 17.08 percent, Peterborough at 9.69 percent, Morgan at 8.70 percent, Ceduna at 8 .21 percent and Quorn 8.18 percent.
Lewiston, a semi-rural suburb, was the best metropolitan performer in the state with home values up 23.99 percent.
Hewett, Two Wells and Willaston were the other best performing residential areas in Greater Adelaide.
“The SA housing market has been a relative outperformer, benefiting from population flows, relative affordability advantages and remote working trends,” said Ms Creagh.
“We’ve also seen changes in preference since the start of the pandemic, where people have wanted bigger houses and bigger blocks,” he said.