The total value of Australian residential real estate rose to $10.4 trillion at the end of February, which, according to CoreLogic is up from $10.3 trillion in the previous month and represents a new high.

In percentage terms, it means the pace of quarterly national home value growth rose to 1.3% over the three months to February, which is trending upwards from the 1.0% growth over the three months to January. National values were up 8.9% over the past 12 months, which is the highest annual increase since the second year of the pandemic when values rose 10.8%.

According to CoreLogic, Perth continues to lead capital growth performance in the greater capital city markets, with values 18.3% over the past 12 months. Interestingly, the largest growth was in cheaper housing, with values increasing in the country's most affordable suburbs by 2.4% over the three months to February. This is compared to a rise of .7% in mid-priced dwellings while the upper quartile recorded a milder 0.6% increase.

CoreLogic research director Tim Lawless said that historically, the more expensive houses tends to lead the price cycles, both into the upswing, but also into downturns.

“This trend is most evident in Sydney, Melbourne and, to a lesser extent Brisbane, where upper quartile values clearly led the 2023 upswing through the first half of the year,” he said.

“The trend hasn't been evident in Perth or Adelaide where lower quartile home values have consistently recorded a faster pace of capital gains through 2023 and the first two months of 2024.”