Property value finally posts Aus-wide increase

By Grace Ormsby

September 02 2019
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Australian property values have increased for the first time since October 2017, new rp data has shown.

CoreLogic’s August home property value index has found that Australia-wide, dwelling property values increased by 0.8 of a percentage point over the month, which also meant it was the biggest property value rise since April 2017.

According to the analysis, the improvement shows recovery of housing property values “accelerated” over the month.

“The lift in housing property values through August was substantial; however, the recent growth is a continuation of the trend seen throughout the year whereby property value falls were consistently losing momentum, and have now started to rise,” it reported.

For CoreLogic’s research director, Tim Lawless, “the significant lift in property values over the month aligns with a consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remains low”.

He considered it likely “that buyer demand and confidence is responding to the positive effect of a stable federal government, as well [as] lower interest rates, tax cuts and a subtle easing in credit policy”.

Housing market property values increased across Sydney (1.6 per cent), Melbourne (1.4 per cent), Brisbane (0.2 of a percentage point), Hobart (0.5 of a percentage point) and Canberra (0.8 of a percentage point), it was reported.

Only Adelaide (-0.2 of a percentage point), Perth (-0.5 of a percentage point) and Darwin (-1.2 per cent) recorded property value losses.

CoreLogic did note that across the rest-of-state regions, only Victoria, Tasmania and the Northern Territory saw a property value increase for August.

Mr Lawless also noted that it was the third successive month of capital gain in Sydney, Melbourne and Hobart, and the second successive monthly increase in Brisbane.

“While the ‘recovery trend’ is still early, it does appear that growth trends are gathering some pace, particularly in the largest capital cities,” Mr Lawless said.

CoreLogic also recorded that the rolling quarter has seen a national 0.6 of a percentage point lift, which is “the first rise in property values over a three-month period since November 2017”.

Based on the three-month figures, combined capital city dwelling comparable property values have increased by 1.0 per cent over the past three months while combined regional market property values have continued to trend lower and are down by 0.6 of a percentage point, according to the housing property data provider.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

About the author

Grace Ormsby

Grace is a journalist on Momentum Media's nestegg. She enjoys being able to provide easy to digest information and practical tips for Australians with regard to their wealth, as well as having a platform on which to engage leading experts and commentators and leverage their insight.

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