Price growth moderates in February but annual gains at strongest levels since mid-2022

Australia’s housing market continued to rise in February, even following the recent interest rate increase. National house prices lifted again over the month, while unit prices also edged higher. Although monthly growth has moderated in some markets, annual growth remains exceptionally strong.

National house prices are now 14.0 per cent higher than a year ago. This is the strongest annual growth rate recorded since June 2022, when the market was coming off the peak of the pandemic housing boom. After reaching extraordinary levels in late 2021, annual growth fell below 14 per cent in June 2022 and then slowed sharply as rate hikes accelerated. The fact that growth has now returned to that level highlights the depth of the current upswing.

Importantly, February’s data does show the first signs of momentum easing in more interest-rate-sensitive markets. Sydney and Melbourne have flattened on a monthly basis, suggesting the recent rate rise is beginning to influence behaviour. However, there is no evidence of broad-based price declines, and annual gains in both cities remain solid.

Elsewhere, growth remains robust. Darwin and Perth continue to lead the nation on an annual basis, while Brisbane, Adelaide and key lifestyle markets such as the Gold Coast and Sunshine Coast remain firmly in double-digit territory. Regional markets are also continuing to record strong year-on-year increases, supported by extremely tight supply conditions.

The unit market reflects a similar pattern. While some larger capitals have slowed, annual gains remain well above long-term averages, underscoring ongoing demand in a segment constrained by limited new construction.