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After slowing down in the last two months, the growth in Australian dwelling values regained momentum in August.
CoreLogic’s latest Hedonic Home Value Index marked a sixth consecutive monthly rise as dwelling values increased 0.8% in August, a slight acceleration from the 0.7% increase in July.
Over the month, Australia’s median dwelling value was at $732,886.
Since bottoming out in February, the national index is now up 4.9%, which reflects around $34,300 increase to the median dwelling value.
Sydney led the recovery trend to-date, with a growth of 8.8% from its lowest point in the cycle in January.
Brisbane has also posted a strong recovery with values up 6.2% since bottoming out in February.
CoreLogic research director Tim Lawless said while the trend in housing values is generally positive, it remained diverse.
“At the other end of the scale, some other capital cities are better described as flat, with Hobart home values unchanged since stabilising in April, while values across the ACT have risen only mildly, up 1.0% since a trough in April,” Mr Lawless said.
Canberra and Hobart were the only two capital cities where advertised supply is tracking higher than a year ago.
“This suggests that a rebalancing between buyers and sellers is a key factor contributing to the stability of values in these regions,” he said.
Below are the median dwelling values of each capital city in August:
Over the month, house values posted a stronger recovery trend versus units. The combined capital cities house values were up 6.3% since bottoming out in February, compared with a 4.9% increase in the unit segment.
The more substantial increases in house values followed a larger decline during the previous downturn, with house values falling by 10.7%, compared to a 6.5% drop in unit values.
“Most cities are showing a larger rise in house values compared with units; however Sydney stands out with the most significant difference through the recovery cycle to-date, possibly due to the more substantial decline in house values which fell by 15.0% through the recent downturn,” Mr Lawless said.
Meanwhile, regional markets delivered varied performance over the month. In fact, values across the non-capital city regions of New South Wales and Victoria went down slightly while those in Queensland and South Australia rose.
Mr Lawless said the normalisation of internal migration trends across regional Australia and the less demand-side pressures from net overseas migration were causing the less stellar recovery in the regions.
“Historic migration data from the ABS shows that prior to the pandemic, regional Australia had only accounted for around 15% of total net overseas migration,” he said.
“Housing values across the combined regional areas of Australia are up 1.6% since a trough in February, compared with a larger 6.0% rise in values across the combined capitals.”
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
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