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Property Market Update July 2022

Dwelling prices nationally fell by 2.0% in the July quarter, as interest rate increases continue to dampen market sentiment.

Property Market Update July 2022

19 September 2022

Property prices fall as RBA acts on inflation

Dwelling prices nationally fell by 2.0% in the July quarter, as interest rate increases continue to dampen market sentiment. These falls were led by our two biggest markets of Sydney and Melbourne, down 2.2% and 1.5% respectively in the month of July alone . 

Inflation remains the RBA’s primary reason for lifting rates, with the Consumer Price Index (up 6.1% over the year to June ) rising much faster than the RBA’s target range of 2-3%. In theory, higher interest rates will slow consumer demand and help to reduce inflation, which is why the RBA has lifted the official cash rate from 0.10% to 1.85%.

We’ve seen the impact of this on the property market this quarter. But let’s not forget the incredible growth that came before it. 

Capital city dwelling values rose by 25.5%, and regional areas by 41.1%, from the mid-2020 low to the April 2022 peak1. This growth was partly fuelled by all-time low interest rates set in response to COVID-19, so we’re now seeing the flipside of that – with rates getting back to more ‘normal’ levels. 

Median dwelling (house/unit) prices at  31 July 20221

City Median dwelling price (house and units) Capital growth last 12 months
Sydney $1,087,376 1.6%
Melbourne  $791,999 0.3%
Brisbane $781,850 22.1%
Adelaide $650,047 24.1%
Perth $560,020 5.5%
Darwin $506,860 5.3%
Hobart $723,066 10.1%
Canberra $925,973 12.1%
Combined capitals  $819,880 5.4%
Combined regional $600,105 17.0%

1 CoreLogic Home Loan Value Index, 31 July 2022

RBA Statement 2 August 2022 

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