House price growth in Australia’s big cities is slowing, with some unlikely locations seeing an increase
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House price growth in Australia’s big cities is slowing, with some unlikely locations seeing an increase
House price growth is slowing in Sydney and Melbourne and accelerating elsewhere, according to Corelogic.
Across the capitals, growth slowed from 11.1% in the year to June, to 9.7% in the year to August, Corelogic’s Home Value Indices showed. Both Sydney and Melbourne were part of this slowdown, Sydney going from 16.4% growth to 13.0% and Melbourne from 13.0% to 12.7%.
However, price growth accelerated in Hobart, which at 13.6% (previously 12.8%) is now growing at a faster rate than Sydney. It is also picking up in Canberra, growing at 8% and more modestly in Brisbane (3%).
Price growth in Adelaide slowed whilst prices fell at an even faster rate than previously in Darwin and Perth.
The Tasmanian renaissance
Hobart has arguably been the property story of 2017, with a rapid increase in house prices.
In fact, Australia’s most southerly city is the 34th fastest growing city on the planet, according to the Knight Frank Global Residential Cities Index.
Prices in Hobart are growing from a very low base: the median value in Hobart stood at $383,438 in August, according to Corelogic, well below the combined capitals’ average of $645,405.
Another overlooked strong performer with particular relevance to brokers is Canberra, which saw the fastest growth in housing finance in the nation, reported CommSec’s State of the States report.
Outlook
Corelogic’s research director Tim Lawless has suggested growth in Canberra and Hobart could continue, given improving local economies and low amounts of housing stock for sale.
Sydney’s falling price growth could eventually lead to “moderate declines” later this year, according to Lawless. Melbourne is less likely to go into decline due to more affordable housing and less investor activity.
Population growth into south-east Queensland could further increase Brisbane prices, Lawless added, whilst falling housing stock in Perth could slow the fall in prices. In Darwin, however, a surge of new stock onto the market will exacerbate the decline in prices.
House price growth is slowing in Sydney and Melbourne and accelerating elsewhere, according to Corelogic.
Across the capitals, growth slowed from 11.1% in the year to June, to 9.7% in the year to August, Corelogic’s Home Value Indices showed. Both Sydney and Melbourne were part of this slowdown, Sydney going from 16.4% growth to 13.0% and Melbourne from 13.0% to 12.7%.
However, price growth accelerated in Hobart, which at 13.6% (previously 12.8%) is now growing at a faster rate than Sydney. It is also picking up in Canberra, growing at 8% and more modestly in Brisbane (3%).
Price growth in Adelaide slowed whilst prices fell at an even faster rate than previously in Darwin and Perth.
The Tasmanian renaissance
Hobart has arguably been the property story of 2017, with a rapid increase in house prices.
In fact, Australia’s most southerly city is the 34th fastest growing city on the planet, according to the Knight Frank Global Residential Cities Index.
Prices in Hobart are growing from a very low base: the median value in Hobart stood at $383,438 in August, according to Corelogic, well below the combined capitals’ average of $645,405.
Another overlooked strong performer with particular relevance to brokers is Canberra, which saw the fastest growth in housing finance in the nation, reported CommSec’s State of the States report.
Outlook
Corelogic’s research director Tim Lawless has suggested growth in Canberra and Hobart could continue, given improving local economies and low amounts of housing stock for sale.
Sydney’s falling price growth could eventually lead to “moderate declines” later this year, according to Lawless. Melbourne is less likely to go into decline due to more affordable housing and less investor activity.
Population growth into south-east Queensland could further increase Brisbane prices, Lawless added, whilst falling housing stock in Perth could slow the fall in prices. In Darwin, however, a surge of new stock onto the market will exacerbate the decline in prices.
