Light at the end of the property value tunnel
For the first time in nearly two years, Australian dwelling values are on their way up.
Over the month of August, CoreLogic’s home value index has shown that dwelling values have increased by 0.8 per cent Australia-wide.
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It’s the first increase seen in nationwide property values since October 2017, while it also takes the title of the largest rise in value seen in a month since April of the same year.
According to CoreLogic, the lift in housing values through August was substantial; however, the recent growth is a continuation of the trend seen throughout the year whereby value falls were consistently losing momentum and have now started to rise.
Commenting on the upwards movement, CoreLogic’s research director, Tim Lawless, said that “the significant lift in 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 that it is 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 value increases were reported by CoreLogic for Sydney (1.6 per cent), Melbourne (1.4 per cent), Canberra (0.8 per cent), Hobart (0.5 per cent) and Brisbane (0.2 per cent).
Adelaide (-0.2 per cent), Perth (-0.5 per cent) and Darwin (-1.2 per cent) recorded value losses over the month.
Despite stronger city values, CoreLogic said that across the rest-of-state regions, only Victoria, Tasmania and the Northern Territory also saw value increases for the month.
Mr Lawless noted that August marked the third successive month of capital gain in Sydney, Melbourne and Hobart.
It was also the second successive monthly increase in Brisbane, according to the researcher.
“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 offered.
Over the rolling quarter, the change in value was noted as exhibition of a national 0.6 per cent lift.
CoreLogic said this is the first three-monthly rise in values since November 2017.
Based on the three-month figures, combined capital city dwelling values have increased by 1.0 per cent, while combined regional market values have continued to trend lower and are down 0.6 per cent, according to the housing data provider.
