In 20 years, there have only been 2 instances where all of Australia’s cities combined produced a drop in total market value.
The last financial year has not contributed to that statistic. Capital cities increased in value by 9.6%, 1.3% greater than the rise over the 2015-2016 financial year. Combined capital city value is now in its 5th year of consecutive growth, but prior to this period there were 2 years in a row where values dropped (-1.4% in 2010-2011 and -3.6% in 2011-2012).
The growth across individual cities, however, is much more varied, with some contributing to the positive statistics more than others.
Within the past year, properties in Sydney have increased in value by 12.2% – the 5th consecutive year where the city has seen a value increase.
This was a raise on the previous financial year’s growth of 11.3%.
Melbourne has just seen its 5th consecutive year of growth, with the rate of growth increasing as the time has gone on.
Property value has increased at the greatest rate since 2009-2010, standing at 13.7%.
Brisbane is a slightly different story. Although the city has seen a value increase, the rise of 2.0% pales in comparison to the previous financial year’s 5.3%.
The last year has been the slowest rate of growth since 2012-2013.
Adelaide has seen a slight growth increase of 2.4%, compared to the previous year’s 2.1%, a reflection of positive sentiment regarding the city’s local economy.
Property values in Perth have dropped over the last 3 financial years. The rate at which they’ve decreased, however, has reduced from 2015-2016’s -4.7% to -1.3% in the last financial year.
This is the first time in 20 years that values have fallen consecutively over 3 years.
Hobart has celebrated the greatest increase in value since 2005-2006, where the city saw a rise of 8.5%. This year, property values have increased by 6.8%.
Property values in Darwin have dropped for 3 years in a row. This year’s drop of -7.0% is the largest since 2010-2011’s -12.6%.
Canberra’s property value increased by 9.6%, the largest jump since 13.3% growth between 2009-2010.
In the majority of capital cities, the rate of growth was greater than that of the previous financial year. Brisbane and Darwin, however, continue to be the exceptions.
One of the main influencers in this negative growth was the reduction in real estate investment between 2015-2016, as a result of intrusive policies by APRA and rate cuts in May and August. Further policies aimed at reducing financial market risk have already been announced for March 2018, which likely heralds another, more pronounced reduction in market growth.