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Capital city dwelling values 9.8% higher over the financial year

Posted by CoreLogic RP Data on 10 July 2015

Housing values rebound higher in June taking dwelling values across the combined capital cities almost 10% higher over the financial year.

Based on the CoreLogic RP Data June home value results capital city dwelling values finished the 2014/15 financial year on a strong footing, with dwelling values rising 2.0 per cent over the June quarter and 9.8 per cent higher over the year. The rate of capital gain was slightly higher over the second half of the year (5.1 per cent) compared with the first half (4.5 per cent) highlighting that the housing market has gathered some momentum during 2015. The previous 2013/14 financial year recorded a slightly higher rate of growth at 10.1 per cent.

Capital Growth to 30 June 2015 Sydney     Melbourne    Bris - Gold Coast
1A - All Dwellings      
Quarter 3.1% 1.9% 1.4%
Year-to-Date 9.1% 5.5% 1.4%
Year-on-Year 16.2% 10.2% 3.5%
Median price based on settled sales over quarter $772,200 $560,000 $455,000

 

Capital Growth to 30 June 2015 Sydney     Melbourne    Bris - Gold Coast
1B - Houses      
Quarter 3.4% 2.5% 1.4%
Year-to-Date 9.8% 6.0% 1.4%
Year-on-Year 17.8% 11.2% 3.8%
Median price based on settled sales over quarter $900,000 $615,000 $500,000

 

Capital Growth to 30 June 2015 Sydney     Melbourne    Bris - Gold Coast
1C - Units      
Quarter 1.5% -2.4% 0.9%
Year-to-Date 5.8% 1.3% 1.8%
Year-on-Year 9.5% 2.4% 1.3%
Median price based on settled sales over quarter $650,000 $480,000 $370,000

 

Capital Growth to 30 June 2015 Sydney     Melbourne    Bris - Gold Coast
1D - Rental Yield Results      
Houses 3.3% 3.1% 4.5%
Units 4.3% 4.2% 5.4%


CoreLogic RP Data's head of research, Tim Lawless, believes the interest rates cuts in February and May have contributed in pushing capital gains higher.

"Growth conditions had been moderating from April last year through to the end of January 2015. With the RBA cutting the cash rate in February, there was an instant buyer reaction across the Sydney and Melbourne housing markets where auction clearance rates surged back to levels not seen since 2009, capital gains once again accelerated and we are now seeing Sydney and Melbourne homes selling in record time; Sydney homes are selling in just 26 days and Melbourne homes are selling in 32 days."
The strength in the housing market has been diverse over the year. While Sydney and Melbourne have seen dwelling values increase by 16.2 per cent and 10.2 per cent over the financial year respectively, every other capital city has seen growth of less than 5 per cent and dwelling values are down over the year in Darwin (-2.9 per cent) and Perth (-0.9 per cent).

Simultaneously, Brisbane's property market has shown the fourth highest rate of growth at 12.4 per cent, followed by Adelaide (10.4 per cent), Hobart (9.6 per cent), Darwin (8.9 per cent) and Canberra (8.8 per cent).

"The three tiers of housing market performance can be best explained by economic and demographic factors where it's no coincidence that New South Wales and Victoria are recording the strongest economic conditions coupled with the strongest rates of migration which is fuelling housing demand. These states are more sheltered from the mining sector downturn and have benefited from the strong multiplier effect of housing construction as well as a vibrant financial services sector.

Brisbane, Adelaide, Canberra and Hobart are seeing softer economic conditions and population growth compared with Sydney and Melbourne, however housing markets have shown some level of growth over the year," Mr Lawless said.


 

Author: CoreLogic RP Data

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