Domain has released its March quarter house price report which has reported the steepest national price growth in almost 18 years, driven by universal price growth across every capital city:
At the national level, house prices rose 5.7% to just under $900,000, with annual gains also hitting double digits (10.0%).
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Sydney led the way recording a quarterly gain of 8.5%, representing a whopping $103,000 increase in its median house price. It was also the fastest quarterly rise in house prices since Domain records began in 1993.
Massive price growth was also recorded across the smaller capitals – Hobart (7.6%), Canberra (9.7%) and Darwin (9.1%) – over the March quarter.
Melbourne’s median house price hit $974,397 in the March quarter after recording a $45,000 (4.8%) increase, with Domain tipping it will crack $1 million over the June quarter.
As expected, unit values experienced far softer growth at only 1.8% nationally over the March quarter, with half of the capital cities also reporting declines:
Domain’s capital city price shows some significant variation from CoreLogic’s, as shown below:
For example, Domain reported Brisbane house price growth of only 1.7% over the March quarter, around one third of CoreLogic’s 5.3% gain.
These differences relate to the methodologies chosen.
Domain’s property price index uses a stratified median price method, which controls for changes in the composition of properties sold by separating the total sample of properties into a number of geographical sub-samples, and then into different strata based on the long-term average price level of properties in those regions.
By comparison, CoreLogic uses a hedonic methodology, which measures price changes for both detached houses and units on a like-for-like basis according to their key attributes, such as location, land size, number of bedrooms and bathrooms, and so on.
Regardless, both data providers are showing overall strong universal growth.