Mixed results as home values climb for the 12th straight month

Australian home values have risen for the 12th consecutive month, but market performance remained varied among the capital cities.

According to the CoreLogic national Home Value Index, property values rose 0.4 per cent in January, which was slightly higher than the 0.3 per cent jump in November and December.

The national median value of homes in Australia now sits at $759,437.

But while prices rose in Sydney, Brisbane, Adelaide, Perth and Darwin, values trended down in Canberra and Hobart.

Perth took the title for the most capital growth in January, rising 1.6 per cent to a median value of $676,823, with Adelaide close behind with growth of 1.1 per cent to median value of $721,376.

Hobart property values fell 0.7 per cent to $651,807, while Canberra home values dropped 0.2 per cent to $842,971.

CoreLogic Research Director, Tim Lawless, said Perth was a stand out among the capital cities for a persistently rapid rate of capital gains. 

“Perth home values rose a further 1.6 per cent in January, on par with the city’s growth trend in November and December and only slightly lower than the recent high of 1.8 per cent recorded in October, he said.

“The western capital continues to see housing demand outweigh supply, helping to push values 16.7 per cent higher over the past 12 months.

“Despite that, housing prices remain relatively affordable compared with most capital cities, with the median dwelling value sitting just under $677,000.”

The index also revealed the gap between house and unit values increased in January, rising to a record high of 45.2 per cent. 

Across the combined capitals, detached housing values rose 0.5 per cent over the month, adding the equivalent of around $4800 to the median house value while units increased a smaller 0.1 per cent, which was equivalent to a $900 lift.

“Since the commencement of the upswing, capital city house values have surged 11 per cent higher while unit values are up 6.9 per cent,” Mr Lawless said.

“It seems that most Australians are willing to pay a higher premium than ever for a detached home.”

Regional markets have also showed stronger value growth relative to the capital cities.

The combined regional index rose 1.2 per cent over the rolling quarter compared with a 1 per cent rise across the combined capitals index.

“While both the combined capitals and combined regional markets are losing momentum in the pace of value growth, the capital city trend has slowed more sharply, mostly due to the flattening of growth conditions in Melbourne and Sydney,” Mr Lawless said. 

“Across the other states, regional WA, SA and Queensland continue to record a slower pace of growth relative to their capital city counterparts; these are also the three regional markets where dwelling values are at record highs.”

Despite worsening housing affordability, the volume of home sales has held slightly above average over the past three months. 

CoreLogic estimates there were 115,241 dwellings sold over the three months ending January; 11.9 per cent higher than the same period last year and 0.5 per cent above the previous five-year average for this time of the year.

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