According to CoreLogic’s April Housing Chart Pack, the current five-year growth remains well below historic peaks recorded in the early 2000s and late 1980s when values surged by nearly 80 per cent.
Kaytlin Ezzy, Economist for CoreLogic, said the current growth reflects strong market fundamentals despite being more moderate than previous cycles.
“Outside of a few short months of declines, values have seen strong upward pressure over the past five years, driven by low stock levels and increased demand,” Ms Ezzy said.
The data shows national values jumped an impressive 75.5 per cent over the five years to March 1989, and a record 79.7 per cent in the five years to December 2003, significantly outpacing the current growth cycle in percentage terms.
However, when measured in dollar terms, the recent rise far exceeds previous booms.
The current five-year increase of approximately $230,000 is substantially higher than the equivalent $140,000 rise in the early 2000s and $60,000 in the late 1980s.
Different capital cities experienced their peak growth periods at varying times.
Sydney and Melbourne saw their strongest five-year growth in the late 1980s, with Melbourne values nearly doubling with a 98.8 per cent increase.
Meanwhile, cities including Brisbane, Adelaide, Perth, Hobart and Canberra recorded their largest gains in the mid-2000s, with values roughly doubling during this period.
Perth stands out with the most dramatic growth among capital cities, recording a remarkable 137.8 per cent increase over the five years to September 2006 during the mining boom.
“Strong economic condition and positive interstate migration amid the 2000’s mining boom, saw housing values in the western capital skyrocket before falling though much of the 2010’s,” Ms Ezzy said.
The current market shows signs of cooling compared to recent peaks.
Properties are now staying on the market longer, with the national median time to sell increasing from 30 days a year ago to 40 days in the first quarter of 2025.
CoreLogic estimates the combined value of residential real estate rose to $11.3 trillion in March, with national home values up 0.7 per cent over the rolling quarter.
Capital cities increased by 0.5 per cent while regional areas showed stronger growth at 1.4 per cent.
The rental market is also showing signs of moderation.
The annual change in national rental values has continued to lose momentum, with rents up 3.8 per cent over the year to March – the lowest annual change in four years.
“Although the increase seen over the past five years is relatively mild in percentage terms, in dollar terms, the recent rise far outperforms the historic peaks,” Ms Ezzy said.