According to the latest Corel Logic data National dwelling values shot up 0.5% in August for the 19th consecutive month. This is despite high interest rates, but experts still say that there are some markets offering better hopes for buyers.

Mid-sized capitals continue to lead the upswing, with prices across Perth up 2% , Adelaide 1.4% and Brisbane increasing 1.1%.

In contrast, Sydney had a rise of only 0.3% and Melbourne had a fall of .2%. Overall the market is still favouring sellers with more owners listing their properties to cash in on higher prices. 

If you are a buyer, experts such as InvestorKit CEO Arjun Paliwal would suggest Melbourne and Hobart as best for market opportunities, while Perth and Adelaide remain the strongest for sellers.

There is a growing focus on markets that are more affordable for home buyers as affordability hurdles start to emerge in mid-sized capitals, causing the pace of price growth to ease. 

CoreLogic’s head of research Eliza Owen said that property prices rose 1.7% nationally over the three months to August, but that was down from 3.3% over winter last year.

“Housing values cannot keep rising at the same pace in the mid-sized capitals of Perth, Adelaide, and Brisbane,” Owen said.

“Affordability is becoming increasingly stretched, particularly in the context of elevated interest rates, loosening labour market conditions, and cost-of-living pressures.”

Affordability challenges have resulted in “cheaper” suburbs in major capitals starting to outperform the more expensive areas, with the lowest quartile of the market rising 2.7% over the three months to August.

That compares to just 0.3% across the uppermost quartile of properties.

Interest rates being high, is currently squeezing borrowing power, meaning that buyers need to make their savings stretch as far as possible. Buyers are more wary of purchasing at inflated prices, and leaning towards more affordable suburbs.