According to CoreLogic, property prices in most of Australia’s capital cities are rising; whilst others are straight up falling behind. The October Home Value Index found that three capital cities failed to record a rise in mid-level housing values during the three preceding months to October 2016.
The cities in question were as follows:
- Hobart (falling 2.8%)
- Perth (falling 1.5%)
- Adelaide (falling 1.3%)
CoreLogic suggest that all other capital cities saw positive price growth during the October quarter. Canberra was the main player here, seeing a 5.6% rise in mid-level house prices. This brought the median value to around $568,000.
The joint second cities to post an increase in housing value were Canberra and Melbourne, with 4.6% each and a median dwelling price increase of $600,000. They were followed by Darwin, which sat at a 4.0% increase and $465,500 property value. Sydney is the penultimate city to post a growth of 2.9% to the $800,000 housing value, whilst Brisbane came last with a 1.3% increase to their $470,000.
Some agents were shocked that Sydney didn’t steal the show in terms of property growth in the October quarter. It should be said that it is still the front-running city in terms of annual capital gains, where it consistently records large increases around 10.6%.
The CoreLogic dataset suggests that there is a trend towards divergence in housing and unit value growth across most cities, yet Sydney is not following the pattern. According to Tim Lawless of CoreLogic, this shows a natural supply/demand trend which exists mainly In the Sydney region.
Across the housing and unit markets, a divergence in growth was most noticeable in Melbourne and Brisbane. Melbourne recorded a 9.6% rise in house prices across the course of the year, compared to a 5.2% in unit price.
In Brisbane, the gap between housing and units was much wider – with houses up to 4.7% and units down to 1.4% over the course of the year. Mr Lawless suggests this is likely due to Brisbane having a flood of new units being build and coming onto the market.
According to CoreLogic, however, property prices across all capital cities increased by 2.7% throughout the course of October.