Strong house growth continues over the September quarter

Tim Lawless, CoreLogic’s head of research, believes that while CoreLogic’s figures are more timely, being monthly instead of quarterly, the ABS figures are of note.

“Although lagged, the ABS residential property price index provides a reference point and benchmark for the more timely private sector measures of house price growth,” Mr Lawless said.

The broad trends from the ABS mirror those already reported by CoreLogic more than two months ago. 

Sydney and Melbourne are leading the recovery trend with housing values up 3.6 per cent over the quarter, with a softer growth trend across most of the smaller capitals, while Adelaide, Perth and Darwin values drifted lower.

The national figures noted that Sydney and Melbourne residential property prices recorded strong growth in the September quarter 2019. 

Property prices rose in Sydney (3.6 per cent), Melbourne (3.6 per cent), Brisbane (0.7 per cent) and Hobart (1.3 per cent).

House prices rose 4.0 per cent in Sydney and 3.7 per cent in Melbourne, while attached dwelling prices rose 2.8 per cent in Sydney and 3.6 per cent in Melbourne.

ABS chief economist Bruce Hockman said, “The increase in property prices is in line with housing market indicators, particularly in Sydney and Melbourne. New lending commitments to households, auction clearance rates and sales transactions all improved during the September quarter.”

Residential property prices fell 3.7 per cent in the year to the September quarter 2019, with all capital cities except Hobart recording falls. 

This is a noticeable improvement on the 7.4 per cent annual fall in the June quarter 2019.