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Lower volumes drive strong property growth
The property market is continuing to show strong gains on the pricing side, as volumes of properties for sales continue to fall.
Lower volumes drive strong property growth
The property market is continuing to show strong gains on the pricing side, as volumes of properties for sales continue to fall.
The supply of properties for sale fell sharply over the month of December as buyers snap up November stock, according to the latest research.
The latest SQM research revealed that Australia’s two largest markets, Sydney and Melbourne, had a 28.7 per cent and 24.4 per cent reduction in listings, respectively.
The month of December traditionally records falls in properties listed for sale as it is the start of the festive and summer holiday period, whilst November shows a surge in listings as vendors are keen to sell before the holiday season approaches.
The recent devastating bushfires in NSW, Canberra and Victoria could also result in declines in property listings and impact property values in these regions in the coming months, SQM research noted.
Lower volumes are continuing to drive national dwelling values, which increased by 4.0 per cent in the three months to December 2019, the fastest growth rate seen over a three-month period for 10 years, according to CoreLogic.
Property research group CoreLogic has released its Hedonic Home Value Index for December 2019, which revealed a 1.1 per cent rise in dwelling values in December, totalling a 4.0 per cent increase in values in the three months ending December 2019.
The growth achieved in the December quarter is reportedly the fastest rate of national dwelling growth over any three-month period seen since November 2009, according to CoreLogic.
However, despite a strong rebound in the second half of 2019, national property values are still sitting below their previous record highs.
The CoreLogic index recorded its peak in October 2017, and national dwelling values were still 3.1 per cent below that peak, as of the end of 2019.
Commenting on the December results, CoreLogic head of research Tim Lawless said the rate of growth in national dwelling prices has already started to subdue.
“Although the monthly capital gains trend remains fast-paced, the 1.1 per cent rise in December was softer relative to the 1.7 per cent gain in November and the 1.2 per cent rise in October.
“This would suggest that the pace of capital gains may have been dampened by higher advertised stock levels or worsening affordability pressures through early summer,” Mr Lawless said.
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