Aussie house prices continue growth streak
House prices in Australia have now surpassed four-and-a-half years of continuous growth, new figures have revealed.
CoreLogic’s November Hedonic Home Value Index has shown a monthly rise in dwelling values in every capital city except Melbourne, which saw prices fall 1.5%. Darwin saw the biggest monthly change in dwelling values, up 3.7% for the month to take the city back into positive territory on an annual basis. Adelaide also saw strong growth, posting a 2.9% rise for November.
With the strong performance of the Darwin market, every capital city except Perth is showing a positive annual trend for house prices, CoreLogic said. Prices in Sydney are up 13.1% year-on-year, while Melbourne values are up 11.3%.
“The November results also show a rise in transaction numbers across the Darwin market over recent months, supporting the moderate improvement in market conditions that the hedonic index is showing,” CoreLogic research head Tim Lawless said.
Lawless said house prices across the nation have now surpassed four-and-a-half years of growth, with capital city dwelling values up 42.2% over the cycle.
“Disaggregating this growth figure highlights the diversity in market conditions, with Sydney and Melbourne at one end of the spectrum experiencing an increase in dwelling values over this period of 67.3% and 46.3%, respectively, while at the other end of the spectrum, Perth and Darwin values have broadly declined since 2014. Perth values are 6.9% higher since the cycle commenced in June 2012, while Darwin values are 13.8% higher over this period,” Lawless said.
Lawless said sluggish unit markets in Melbourne and Brisbane were also placing a drag on capital growth in the cities.
“With the unit pipeline remaining substantial, we expect to see a continuation of weaker market conditions across those unit markets where high supply levels are dampening prospects for higher value growth,” he said.