Industry research has confirmed why Aussies love bricks and mortar, with average median house prices across Australia’s eight capital cities jumping by 103.8% to $1,011,208 over the past 20 years, while rents rose 41.4%.

According to the Real Estate Institute of Australia, the real median house price increased in every capital city, ranging from 75.4% in Perth to a staggering 269.1% in Hobart. 

REIA President Hayden Groves said, “Over the past 10 years, the weighted average median house price for the eight capital cities grew by 56.1%." 

Sydney house prices lead the way 

The weighted average median price for other dwellings, such as apartments and townhouses for the eight capital cities grew 51% during the past two decades, according to Hayden Groves. 

During the past decade, the weighted average median other dwelling price for the eight capital cities grew by 19.6%. Since 2012, median prices for other dwellings grew by 59.2% in Hobart, 34.4% in Sydney, 18.9% in Melbourne, 14.6% in Canberra and 12.8 % in Adelaide (12.8%). 

Angus Raine, Executive Chairman of Raine & Horne said as with all growth assets, house prices go up and down during the short term, but the REIA data highlights the key trend over a long-term trajectory has been on the upward. 

“Our offices have found that plenty of homeowners are cashing in on the incredible gains made during the pandemic, when home values recording boost in values of up to 47%,” he said. 

“This has left many Australians property owners with a substantial amount of home equity, and our offices are reporting an average 40% jump in appraisals as savvy homeowners seek to take profits made since the start of the pandemic.” 

Rental market records strong gains 

Weighted average median rents for a three-bedroom house in the eight capital cities increased 41.4% to $506 per week, during the past 20 years. 

All capital cities recorded increases, ranging from 84% in Hobart to 30.6% in Melbourne. 

“Since 2002, the weighted average median rent for two-bedroom other dwellings grew by 39.3% to $474 a week,” Mr Groves explained.  

“The median rent increased in all capital cities over the ranging from 26.1% in Sydney to 90.9% in Hobart.” 

The REIA data also found that during the past two decades, there had been 3,390,189 new dwelling completions.  

This comprised of 63.7% new houses and 36.3% were classed as other residential. 

“March 2012 saw the lowest number of new house completions (19,836) and September 2018 had the highest number (33,853),” Hayden Groves added. 

“For other residential March 2002 saw the lowest number of completions (7,294) and December 2016 had the highest number of new completions (30,328).”