Sydney housing market leading the price recovery

key takeaways

Key takeaways

Australian home prices jumped again in June, rising 0.3% month-on-month. National prices are now just 0.1% lower than they were a year ago.

Across the capitals, prices are now higher than the same time last year.

Sydney continued its comparatively strong recovery (+0.6%) in June, with prices up 4.5% since their trough last year. Prices in Sydney are just 3% below their peak recorded in February 2022.

Hobart and Darwin were the only capitals to see prices decline in June. Hobart has continued its period of underperformance after strong growth for the previous few years. Prices in Hobart are now 7.15% below their peak.

As has been the case for much of 2023, regional areas recorded slower growth than capital cities.

Prices in capitals are up 3.0% since December, compared to 0.8% for regional areas. That said, prices regionally held up better in 2022, meaning prices have not fallen as far as in capitals.

The latest Proptrack Home Price Index shows the 2023 house price recovery continued in June, despite the Reserve Bank lifting the cash rate for the 12th time since May last year.

According to Angus Moore, Economist at Proptrack, interest rates will continue to be a headwind for home prices, but the peak of interest rates is likely close.

Higher interest rates are being offset by a limited flow of new properties hitting the market, as well as strong fundamentals for housing demand.

While the total number of properties listed on has picked up compared to a year ago, the flow of new properties hitting the market remains subdued, which is creating a more competitive environment for properties coming to market.

With auction clearance rates strong, and fewer properties hitting the market during winter, price growth is likely to continue in the near term, despite the potential for further interest rate increases” said Moore.

July 1 2023 Proptrack home price index

annual change in home prices

According to PropTrack’s data Sydney home prices continued their recovery in June after leading the downturn in 2022.

Sydney home prices have now increased for seven straight months, with a 0.6% rise in June.

That means home prices are now up 4.5% from their trough in November last year and are just 3% below their February 2022 peak.


Home prices in Melbourne increased 0.2% in June, bringing them up 0.8% from their low in January this year according to Proptrack.

While Melbourne has not seen as sharp a recovery in prices this year as Sydney has, it also did not see as large a decline in 2022.

Even so, prices in Melbourne are still 5.2% lower than their peak in March 2022.


Proptrack reports that Brisbane recorded home price growth of 0.1% in June – a slower pace than in recent months.

Even so, Brisbane prices are recovering with six consecutive months of growth.

This brings prices up 2.9% since December.

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