Capital city dwelling values continued to rise in January, according to the CoreLogic Home Value Index.
Combined capital city dwelling values increased by 0.7% in January, which took values 10.7% higher over the past year. Moreover, over the three months to January, capital city dwelling values increased by 2.3%. These recent increases have taken the total value of residential value stock to $6.9trn, according to CoreLogic’s estimates.
Over the three months to January, Hobart recorded the greatest increase in values, rising by 5.8%. Sydney and Melbourne also recorded fairly substantial increases over the three-month period, with values rising by 2.7% and 2.4%, respectively. Darwin
was the only capital city where dwelling values fell in January.
Dwelling values rose by 10.7% over the 12 months to January 2017. Sydney dwelling values increased by 16% over the 12 months to January 2016, with Melbourne (11.8%) the only other city to record double-digit value growth over the year.
Dwelling values also increased over the year in the following capitals:
- Brisbane (4.4%)
- Adelaide (4.8%)
- Hobart (7.8%)
- Canberra (6.7%)
While values are rising across most capitals, values are -3.2% lower over the year in Perth
and -0.7% lower in Darwin.
Comparing the performance of houses to units, capital city house values rose by 11.1% over the 12 months to January compared to an 8% increase in unit values. With a near record-high pipeline of units under construction, it’s anticipated that the growth in unit values will continue to lag behind those of houses throughout 2017.
Suburbs with a median value of at least $1m have increased exponentially
Over the five years to December 2016, the number of suburbs nationwide with a median value of at least $1m has increased by a whopping 176%.
“There was a time in which having a dwelling worth $1 million or more meant that the property was exclusive and rare. Today dwellings with a $1 million valuation are becoming much more common,” said Cameron Kusher, head of research – Australia at CoreLogic RP Data.
At the end of 2016, there were 760 suburbs nationwide that had a median value of at least $1m. This figure was a significant leap from just 275 suburbs nationwide five years earlier.
“Units have been the big mover with the number of $1 million suburbs increasing by 479% over the five years compared to a 160% increase for houses,” Kusher said.
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