Which capital city had the fastest home value growth?
While the rate of capital gains for home values has slowed over the past year, one capital city has remained resilient.
Capital city home values saw a slight lift in March, rising 0.2% to bring values 1.6% higher over the first quarter of the year, new research from CoreLogic RP Data shows. In spite of the rise, however, the annual rate of house price growth has slowed to its lowest point in 31 months.
Source: CoreLogic RP Data
CoreLogic RP Data head of research Tim Lawless said the rate of growth stood in contrast to the first quarter of last year.
“The March quarter rise in capital city dwelling values is in stark contrast to the first quarter of 2015, when values increased by 3.0 per cent, which is almost double the current pace of quarterly growth. However, compared with the final quarter of 2015, when capital city dwelling values were down 1.4 per cent, the housing market has shown a modest rebound in growth which is well below the strong capital gains recorded over the first half of 2015,” Lawless said.
Lawless said dwelling values across the capital cities rose by 6.4% over the past 12 months. While no capital city recorded an annual growth rate in the double digits, Melbourne has proven the most resilient, with dwelling values growing by 9.8% over the past year.
In contrast, Perth and Darwin were the only two capitals where home values trended lower on an annual basis, with Perth down 2% and Darwin down 1.8%. The Sydney market showed the most pronounced slowing of capital growth, with annual dwelling value growth more than halving to 7.4% from a high of 18.4% in July of last year.
“The annual pace of home value appreciation across Australia’s capital cities highlights the slowing growth trend,” Lawless said.