It was earnings season for the share market in August, with the ASX 200 experiencing significant fluctuations before ending the month flat while home values rose for a 19th consecutive month.
Comparing shares vs. property at a high level, we saw 0% growth in the S&P/ASX 200 Index (ASX: XJO) and a 0.5% lift in the national median dwelling value in August, according to CoreLogic data.
The theme of the month was performance diversity. Some ASX stocks shot the lights out on strong earnings reports, while four capital city property markets grew in value (three strongly), and the rest fell.
Shall we dig into the data?
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Shares vs. property price growth in August
Many ASX stocks outperformed the benchmark considerably during the August earnings season. The price gains in the top 5 performing ASX shares were mostly due to impressive company reports.
The No. 1 ASX 200 share for price growth in August was buy now, pay later share Zip Co Ltd (ASX: ZIP). Zip shares soared by 31.51% over the month and are up an astonishing 265% in the year to date.
In the property market, Perth, Adelaide and Brisbane were once again the strongest performers among capital city markets. Median house prices lifted by 1.9% to a median of $818,839 in Perth. There was a 1.4% rise in Adelaide to a median of $844,963 and a 0.9% lift in Brisbane to a median of $966,382.
Regional house prices also lifted most in Western Australia (1.6%), Queensland (0.9%) and South Australia (0.7%).
However, CoreLogic Head of Research, Eliza Owen, said the pace of price growth nationally is slowing down as affordability constraints start to bite.
The national median dwelling value increased by 1.3% over the three months ending 30 August, down from 2.7% over the prior corresponding period in 2023.
Owen said:
Housing values cannot keep rising at the same pace in the mid-sized capitals of Perth, Adelaide and Brisbane when affordability is becoming increasingly stretched, particularly in the context of elevated interest rates, loosening labour market conditions and cost of living pressures.
Melbourne home values now cheaper than Perth and Adelaide
One of the most interesting data points in August was seeing the median dwelling value, which combines all types of properties, in Perth and Adelaide overtake Melbourne.
That hasn't happened for Perth since February 2015, when Australia was at the tail-end of a mining boom.
Adelaide hasn't been more expensive than Melbourne in the more than 40 years that CoreLogic has been collecting data.
This is significant and reflects supply and demand differences at play today.
One demand difference is lower investor activity in Victoria due to new taxes imposed on landlords.
But arguably, the biggest factor weighing down Melbourne home price growth today is higher supply.
CoreLogic says Victoria has built more homes than any other state or territory over the past 10 years.
The impact of this higher supply provides an interesting case study for the National Housing Accord program, which aims to build 1.2 million homes over the next five years.
The Accord's key goal is to raise supply across the country to make housing 'more affordable'.
But politicians at all levels tend to stop short of saying they want home prices to actually go down. It's not much of a vote winner when you consider that 66% of households own their homes.
Instead, they say they hope extra supply will reduce the pace of price growth.
In Melbourne's case, that's pretty much exactly what's happening. The median dwelling value has dipped by 1% over the past year. So, you could say Melbourne is a very balanced market with prices going nowhere. That's helpful for first-home buyers trying to save a deposit, which is the key hurdle these days.
Shares vs. property: Here are the numbers for August
| Property market | Median house price | Price growth last month | 12-month price growth |
| Sydney | $1,471,892 | 0.3% | 5.7% |
| Melbourne | $929,715 | (0.2%) | (1.1%) |
| Brisbane | $966,382 | 0.9% | 14.1% |
| Adelaide | $844,963 | 1.4% | 14.5% |
| Perth | $818,839 | 1.9% | 24.3% |
| Hobart | $692,606 | (0.4%) | (2%) |
| Darwin | $589,392 | (0.1%) | 2.9% |
| Canberra | $967,933 | (0.3%) | 2.6% |
| Regional New South Wales | $767,168 | 0.1% | 3.9% |
| Regional Victoria | $598,291 | (0.3%) | (0.9%) |
| Regional Queensland | $664,952 | 0.9% | 12.3% |
| Regional South Australia | $442,765 | 0.7% | 9.8% |
| Regional Western Australia | $541,546 | 1.6% | 19.6% |
| Regional Tasmania | $534,445 | 0.3% | 1.4% |
| Regional Northern Territory | $443,039 | (0.6%) | (0.3%) |
Top 5 risers of the ASX 200 last month
The ASX 200 recorded 0% growth in August. But wow, what a rollercoaster ride, as this chart shows.
According to CommSec data, these 5 ASX 200 shares were the best-performing stocks.
| ASX 200 share | Share price growth |
| Zip Co Ltd (ASX: ZIP) | 31.51% |
| WiseTech Global Ltd (ASX: WTC) | 27.19% |
| Orora Ltd (ASX: ORA) | 22.55% |
| Judo Capital Holdings Ltd (ASX: JDO) | 22.3% |
| Charter Hall Group (ASX: CHC) | 22.18% |
Why did the Zip share price rocket 32% higher?
The company's fourth-quarter update at the end of July was the main driver for the Zip share price last month.
Zip shares actually fell on the day the company released its FY24 results in late August.
However, this appears to have been the result of profit-taking, as the numbers looked good, and the stock price rebounded strongly the next day.
Zip reported a 28.2% increase in revenue to $868 million and a 52.8% leap in cash gross profit to $373 million.
Also last month, Zip investors who participated in the recent SPP enjoyed a 38.46% on-paper capital gain on the day their new shares hit the market.
