A new study by CoreLogic RP Data has debunked industry-wide beliefs that the current property boom is the most robust, amid the historic cash rate cuts from the Reserve Bank of Australia.
The report titled Property Pulse said the current growth rate is much slower than the recorded rate from 2001 to 2004, the years considered to be the “boom period”. The findings were made despite the strong performance of hot housing markets Sydney and Melbourne, analyst Cameron Kusher said.
Kusher added that the capital growth rate of Sydney is “nowhere near as strong as the rapid home value growth recorded between 2001 and 2004”.
Another surprising find was that Hobart and Darwin appeared to be the only two capital cities in Australia with almost similar capital growth numbers from post-2000 to the current period.
“Another major difference is that post-2000 growth was broad-based whereas the current growth in home values has been narrow, largely focussed on Sydney and Melbourne. At the same time, household debt levels were substantially lower in 2001 than they are now, which is another key contributing factor for strong increases in home values then, compared to now,” Kusher said.
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