A significant milestone has been achieved. Adelaide and Perth home prices are officially more expensive than Melbourne. However, this may not be as straightforward as it appears.
Adelaide and Perth overtake Melbourne's home values
According to CoreLogic, Melbourne's median dwelling value has been surpassed by Adelaide and Perth, leaving Melbourne with the third-lowest median among capital city markets. Adelaide's median now stands at $790,789, Perth's at $785,250, and Melbourne's at $776,044.
Capital City | Dwelling Value | Annual Growth |
Sydney | $1,180,463 | 5.0% |
Melbourne | $776,044 | -1.0% |
Brisbane | $875,040 | 15.0% |
Adelaide | $790,789 | 14.9% |
Perth | $785,250 | 24.4% |
Hobart | $655,114 | -1.2% |
Darwin | $504,367 | 1.6% |
Canberra | $845,875 | 1.5% |
Combined | $885,877 | 7.1% |
This trend is widely discussed in the media, but crucial details are overlooked.
Dwelling values and house values are not the same thing.
Dwelling values include a broad range of property types, including houses, units, and apartments. In Melbourne, the median dwelling value is significantly affected by a large number of relatively inexpensive units.
In contrast, Adelaide and Perth markets are predominantly composed of houses, which typically have higher values—houses make up around 84% of both Adelaide and Perth’s property markets. This composition means that dwelling values alone don’t provide a complete picture of the housing market.
Why are Adelaide and Perth homes more expensive than Melbourne?
Currently, median house and unit values in Perth and Adelaide are approximately 10% and 9% lower than those in Melbourne, respectively. Although houses in Adelaide and Perth are more expensive than in Melbourne, the situation is not that simple, however, given this year’s trend where Brisbane’s property values surpassed Melbourne’s, Adelaide and Perth could soon follow suit.
While houses in Adelaide and Perth are more expensive than Melbourne, the current scenario is more complex. This is evident from the recent trend showing Brisbane's property prices exceeding those of Melbourne, suggesting that Adelaide and Perth might also experience a similar shift in the near future.
Capital City | House Value | Unit Value |
Adelaide | $844,963 | $555,464 |
Perth | $818,839 | $561,582 |
Melbourne | $929,715 | $610,652 |
Is now the time to buy in the Melbourne market?
Many experts are saying that the Melbourne property market is poised for growth and cannot stay flat forever. However, whether Melbourne is the right choice for you ultimately depends on your budget, investing strategy, cash flow, and risk tolerance.
If you would like to know more about how we can help you build a property portfolio give us a call on 0423 344 286 or email us at hello@mindsetproperty.com.au, or simply connect with our Director Peter Theodorou.
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Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
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