House values rise across the board

By |

Australia's housing market ended the first month of the new decade with price gains across capital cities and rest-of-state regions except for South Australia, according to CoreLogic.

The national home value index registered a 0.9% monthly increase in January while clocking the fastest annual growth since December 2017 at 4.1%.

Sydney and Melbourne remained the top performers in terms of quarterly and annual gains, with the former gaining the most in the last three months and the latter reporting the highest yearly growth.

The highlight of the month, however, was Perth, which seemed to be slowly emerging from a downturn that had lasted for half a decade. On a monthly basis, prices were up by 0.1%. If the previous three months were taken into consideration, Perth house values were 0.4% higher.

The growth that initially began in Sydney and Melbourne mid-2019 appears to be gradually spreading to other areas of the country. In fact, price gains were recorded across all capital cities and regional markets except in South Australia, where prices remained flat.

Of the regional markets, the strongest showing came from Tasmania, where values grew by 1.3% over the month.

The table below shows the changes in median dwelling values in each capital city:

CoreLogic Home Value Index – January 2020

Area

Growth (%)

Median Value

Monthly

Quarterly

Annual

Sydney

1.1

5.6

7.9

$862,814

Melbourne

1.2

4.9

8.2

$681,925

Brisbane

0.5

2.0

1.1

$499,691

Adelaide

0.2

1.3

0.4

$437,411

Perth

0.1

0.4

-5.7

$440,965

Hobart

0.9

3.4

5.0

$481,665

Darwin

0.1

-1.6

-8.1

$390,143

Canberra

0.3

2.0

3.1

$630,078

 

Combined Capitals

0.9

4.2

5.2

$632,408

Combined Regionals

0.7

1.7

0.4

$386,618

National

0.9

3.7

4.1

$545,622

Growth slowing down?

While house values remained on an upward trajectory since the turnaround last year, the speed of growth, particularly across state capitals, seemed to have lost momentum over recent months, CoreLogic head of research Tim Lawless said.

"Factoring in the seasonal affect, the latest results indicate a reduction in the speed of growth across most markets, especially for Sydney and Melbourne, where affordability constraints are once again becoming more pressing," he said.

A separate analysis by NAB economists said that property-price growth in Australia is expected to slow in an underlying sense over the next two years.

Based on NAB's projections, Australia's overall price growth will hit 4% this year before slowing down to 2.5% in 2021.

"Low interest rates are expected to continue to provide support, as is the low level of unemployment and still healthy population growth in Sydney and Melbourne, however, affordability constraints will arise as prices reach their previous peak," NAB said.

Top Suburbs : wentworthville , kawana , tiwi , revesby hts , coolbellup

SHARE

Get help with your investment property


Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here