Monthly Archives: April 2018

Australian Dwelling Values Hold Firm In March With Regional Values Recording a 0.4% Rise

According to the CoreLogic hedonic home value index, national dwelling values were unchanged in March, with the steady month on month reading comprised of a 0.2% fall in capital city dwelling values while the combined regional markets saw values rise by 0.4%.

Trends across the March quarter showed that capital city home values were 0.9% lower over the March quarter, while values across the regional markets have tracked 1.1% higher.

Regional markets are now consistently outperforming the combined capitals:  CoreLogic head of research Tim Lawless said, “The stronger combined regional markets performance continues a trend that began to emerge in October last year where regional housing markets  showed an overall improvement in the pace of capital gains while the combined capitals trend softened.”

CoreLogic Hedonic Home Values Indices Results

 

Focusing on the capital cities, six of the eight capital cities have recorded a fall in values over the first quarter of 2018, ranging from a 1.8% drop in Sydney values to a 0.1% fall in Darwin.

Focusing on the capital cities, six of the eight capital cities have recorded a fall in values over the first quarter of 2018, ranging from a 1.7% drop in Sydney values to a 0.1% fall in Darwin.

Mr Lawless said, “The broad-based falls highlight that the softening trend in the Australian housing market is largely due to weaker conditions in Sydney, however, most other capitals are also recording subtle falls.  Dwelling values were steady over the quarter in Brisbane and have continued their strong run of growth across Hobart, up +3.4%.”

The unit sector across Sydney and Melbourne has shown stronger conditions relative to detached housing.  Mr Lawless said, “The March home value indices results also confirm that the unit sector is now consistently outperforming the detached housing market – a trend which has been evident since mid-2017.  The stronger performance is subtle at the combined capitals level: capital city house values were down 1% over the March quarter while unit values were down a more moderate 0.7%.”

More significant differences between houses and units can be seen in Sydney and Melbourne where housing affordability pressures are more evident relative to other cities. Sydney unit values are up 1.9% over the past twelve months, while house values are down 3.8%.  Similarly in Melbourne, unit values are 6.6% higher over the past twelve months while house values are up just 4.9%.

Mr Lawless said, “The stronger performance from the unit sector may suggest that buyer demand is becoming more concentrated in the medium to high density sector where entry prices are lower and commuting times are often more convenient when compared with the detached housing markets around the outer fringes of the city.

Perth house and unit medians stable in March

Perth’s median house and unit prices were stable in March, with reiwa.com data showing both sectors of the housing market were holding up well.

REIWA President Hayden Groves said Perth’s median house price had increased 0.5 per cent to $517,650 in March, while the median unit price had remain unchanged at $407,000.

“It’s pleasing that both house and unit prices are strengthening at the same time because it suggests one sector of the market hasn’t started to recover at the expense of the other.

“Unit prices in Perth are following the same trends we have observed in house prices, with March being the third month in a row the unit median has remained stable,” Mr Groves said.

The top performing sub-markets for median house price growth in March were South Perth/Victoria Park, Fremantle, Belmont, Vincent/Stirling SE and the Western Suburbs, while in the unit market Joondalup South, Cockburn, Stirling West, Bassendean/Bayswater and Stirling East were the stand-outs.

“Buyer confidence in Perth is increasing and based on where we are seeing the biggest improvements in price growth, so is demand for multi-residential dwellings in medium to high density areas,” Mr Groves said.

“Additionally, optimism among sellers appears to be returning with reiwa.com data for March showing listings for sale increased three per cent over the month.”

“Consumer sentiment in WA is currently the highest it’s been since mid-2013 when we were at the height of the resources boom. Sellers are feeling more confident as market conditions have picked up and subsequently more motivated to list their property for sale.”