- House prices at record highs in Sydney, Perth and Adelaide
Home prices have hit new record highs as Anthony Albanese campaigns to allow all first-home buyers to get a property with a small five per cent deposit.
House prices are at record highs in Sydney, Perth and Adelaide, while two more capital cities have joined the $1million club during the past year, new Domain data shows.
The Prime Minister told the ABC leaders' debate last night his plan to allow all first-home buyers to get in with a five per cent deposit would help them enter the property market sooner.
'(It's a) plan as well to get first-home owners - to give them a fair crack particularly young people,' he said.
'Now, a five per cent deposit rather than 20 will mean that instead of paying off someone else's mortgage, they can pay off their own mortgage.'
Mr Albanese downplayed a suggestion from ABC moderator David Speers that helping first-home buyers get into the market with a smaller deposit would boost housing demand, and therefore prices, while failing to address the lack of supply.
'We need to do both - we need to give people a fair crack, particularly young people,' he said.
Sydney, already Australia's most expensive property market, has gotten even pricier with the city's median house price rising four per cent in the year to March to $1.692million, new Domain data has revealed.
Home prices have hit new record highs as Anthony Albanese campaigns to allow all first-home buyers to get a property with a small five per cent deposit
Brisbane, Adelaide and Perth had double-digit annual growth, even though the Reserve Bank has only cut interest rates once since 2020.
Perth had the strongest growth of 14.1 per cent with a median of $917,706 - a new record - and is set to soon join the $1million club.
Adelaide is the latest entrant to Domain's $1million club, with its median house price soaring by 12.1 per cent in a year to a new record high of $1,000,202.
Brisbane has also joined the $1million club during the past year with its mid-point house price climbing by 8.7 per cent to $1.022milion.
But existing members of the $1million club suffered price falls with Melbourne's value sinking 1.3 per cent to $1.036million as Canberra prices dropped 2.3 per cent to $1.049million.
Labor is promising to build 1.2million homes over five years, working out at 240,000 annually.
But last year, just 168,049 new home building projects started, new Australian Bureau of Statistics data showed.
This was even weaker than the 177,313 completion rate, suggesting building activity is weakening rather than climbing during a housing crisis.
Sydney , already Australia's most expensive property market, is even pricier with the city's median house price rising four per cent in the year to March to $1.692million, new Domain data has revealed
Sydney and Melbourne received the biggest influx of overseas migrants while Brisbane and Perth are getting a big inflow of interstate migration.
Domain's chief of research and economics Nicola Powell said sustained house price price growth, across all capital city markets, would be unlikely until the Reserve Bank slashed interest rates in reaction to Donald Trump's tariffs.
'With consumer sentiment at a six-month low, another strong price surge is unlikely until we see a real improvement in home loan affordability,' she said.
'That said, it could be a window of opportunity for buyers, particularly with both major parties proposing new support for first home buyers ahead of the election.'
Even so, overall capital city house prices still rose by 4.9 per cent over the year to a new record of $1.178million - meaning a working couple would need to earn $181,333 between them just to get a mortgage with a 20 per cent deposit.
The futures market sees the Reserve Bank cutting interest rates from 4.1 per cent now to 2.85 per cent by the end of 2025.
The RBA's next decision is on May 20 - 17 days after the upcoming election.
