Australia’s housing market ended 2021 with the strongest value growth in 32 years.
As shown in the next chart, Australian dwelling values rose a whopping 20.9% in 2021 across the five major capital cities – the strongest annual increase since 1989:
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Brisbane (28.4%), Sydney (25.3%) and Adelaide (23.2%) each experienced above average price growth in 2021, with Melbourne (15.1%) and Perth (13.1%) lagging:
Price growth is slowing fast, however, with dwelling values across the five major markets growing by only 0.6% in December – the slowest monthly growth since January 2021:
Price growth remained turbo-charged across Brisbane (2.9%) and Adelaide (2.6%) in December, but was moderate in Sydney (0.3%) and Perth (0.4%) and fell in Melbourne (-0.1%):
Quarterly growth is also fading fast at 3.1% in December – down sharply from May’s peak of 7.1%:
Once again, Brisbane (8.5%) and Adelaide (7.2%) are leading price growth across the major capitals, with the other major capitals slowing fast:
While dwelling value growth was extreme in 2021, the boom is clearly drawing to an end and has become two-speed.