Australia’s property boom pales in comparison to the previous decade
Australia’s current property boom may be something of an illusion, according to new research.
Analysis by CoreLogic has found the country’s booming property market is actually growing at a slower pace than the previous decade. The research company compared capital city house price appreciation for the first seven years of this decade with the period between January 2000 and February 2007. CoreLogic found that Sydney was the only capital city to have recorded better growth in this decade compared to the last.
The analysis found that capital city dwelling values over the first seven years of this decade grew less than half of what they did over the same period the previous decade. House prices were up 44.9% from January 2010 to February 2017, compared to a 98.2% rise in the same period from 2000 to 2007.
Sydney was the lone exception to this, growing 78.3% over the past seven years compared to 61.1% for the same period a decade earlier.
“Early in 2000, values rose rapidly before starting to fall in 2004. By comparison, values fell early in this decade but have been trending higher since June 2012,” CoreLogic said.
Melbourne values were up 55.1% in the first seven years of this decade, compared to 95.6% the previous decade. Brisbane saw only a 6.6% increase from January 2010 to February 2017, compared to a massive 147.2% from January 2000 to February 2007.
CoreLogic research analyst Cameron Kusher says that Sydney and Melbourne were the only capital cities to see dwelling values increase more than 25% since the beginning of 2010.
“As a comparison, the weakest growth in values between January 2000 and February 2017 was 61.1% in Sydney, which is actually higher than the growth in all capital cities except for Sydney so far this decade,” Kusher said.
Kusher says that this reinforced the idea that concerns over housing over-valuation were only borne out by the performance of the Sydney and Melbourne markets.
“For the remaining capitals, the reality is that since the beginning of the decade there has been very little value growth,” he said.