Australian Home Values Surge in May, Mid-Sized Capitals Lead the Charge

May proved to be a remarkable month for Australia’s property market, with CoreLogic’s Home Value Index showing a significant 0.8% increase—the largest monthly gain since October of the previous year. Mid-sized capitals like Perth, Adelaide, and Brisbane experienced particularly robust growth, with home values rising by 2%, 1.8%, and 1.4%, respectively.

In a noteworthy development, Sydney reached a new milestone by recovering to its previous record high, which was set in January 2022. Brisbane also made headlines by surpassing Canberra to become the second-most expensive capital city in terms of median dwelling value.

The strong growth in mid-sized capitals can be attributed to extremely low supply levels, which have fueled demand and driven up prices. However, these dynamics have also highlighted challenges in housing affordability and the need for a robust supply response to meet the growing demand.

Despite these challenges, the Australian property market continues to demonstrate resilience and remains an attractive investment option for many.