Spring brings mixed results across capital city housing markets

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CoreLogic RP Data’s Home Value Index results for the first month of Spring are a mixed bag.

During the September quarter, half of the capital cities recorded a decline in dwelling values, with Hobart down 2.0%, Adelaide by 1.6%, Perth by 0.7%, and Canberra by 0.4%.

On the other hand, Melbourne, Sydney, Brisbane, and Darwin posted gains of 7.4%, 4.6%, 1.9%, and 0.4%, respectively.

Sydney reports a flat growth rate, which head of research for CoreLogic RP Data Tim Lawless said comes after the 16.7% increase in dwelling values over the past year, and a 49.6% rise over the growth cycle thus far.

“The slower month-on-month reading across the Sydney market comes at a time when auction clearance rates have slipped to the low 70% range from week-to-week and the number of advertised properties has risen. Vendors are still enjoying strong selling conditions, but it looks like buyers are slowly regaining some leverage in what has been a very hot market,” said Lawless,.

Although half of the capital cities enjoyed increased values over the past quarter and year, the other half was not as fortunate.

Darwin’s dwelling values dropped by 3.9% over the twelve months to the end of September, while Perth’s values were 0.9% lower for the year. Adelaide’s values dipped by 0.3%, and Hobart’s by 0.2%.

The report also analysed the market performance of houses versus apartments in capital cities.

House values in capital cities rose to 11.6%% over the past year compared to the 7.3% increase in unit values.

The only capital city where apartments did better than houses over the past 12 months was Hobart, however only a fifth of the city’s dwelling sales were units.

Results for the three months to September 2015 include the following:
  • The best performing capital city was Melbourne, with a 7.4% increase.
  • The weakest capital city, on the other hand, was Hobart with a 2.0% fall.
  • The highest rental yields for houses were those in Darwin, with a gross rental yield of 5.4%. For units, it is Darwin’s at 5.8%.
  • The lowest rental yields for houses were in Melbourne with a gross rental yield of 2.9%. Both Melbourne and Sydney’s units had the lowest rental yields at 4.1%.
  • The most expensive city is Sydney, with a median dwelling price of $785,000.
  • The most affordable city is Hobart, with a median dwelling price of $305,500.

 

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