House prices still on the rise
House prices have risen across six of Australia’s eight capital cities.
The CoreLogic October Home Value Index has shown capital city home values hitting record highs during the month. Combined capital city dwelling values rose 0.5% in October, falling only in Adelaide and Hobart by 2.4% and 2.1%, respectively.
The result brings house prices 10.6% higher for the year in Sydney, and 9.1% higher in Melbourne. Combined capital city home values rose 7.5% on a year-on-year basis.
CoreLogic research director Tim Lawless said some of the results showed a divergence between the detached house and apartment markets. Sydney detached home values and unit values grew relatively in line, rising by an annual rate of 10.9% and 9.1%, respectively. There was a much more pronounced difference in Melbourne and Brisbane, however. Melbourne house values grew 9.6%, compared to 5.2% for units. Brisbane house values rose 4.7%, while unit values fell 1.4%.
“The weaker performance of unit values across the Brisbane market may be partially attributed to supply concerns, as unit supply levels across key regions of Brisbane’s inner city show the potential for a significantly larger relative increase in existing stock levels when compared with Melbourne and Sydney,” Lawless said.