Home values show mixed trends across Australian capital cities
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The CoreLogic Home Value Index for July 2024 reveals a varied housing market across Australia’s capital cities, with some areas experiencing growth while others face declines.
National home values rose 0.5% in July, marking the 18th consecutive monthly increase. However, the pace of growth is slowing in some markets.
Key points:
- Three capital cities recorded declines over the past three months: Melbourne (-0.9%), Hobart (-0.8%), and Darwin (-0.3%).
- Sydney’s quarterly growth rate slowed to 1.1%, down from 5.0% a year ago.
- Perth and Adelaide continued strong growth, with quarterly increases of 6.2% and 5.0% respectively.
- Brisbane values rose 3.8% over the quarter, though this is lower than the 4.7% increase seen last year.
- Lower-priced properties are outperforming higher-priced homes in most capital cities.
- Regional housing values are growing more slowly than capital cities, with a 1.3% quarterly increase compared to 1.8% for combined capitals.
CoreLogic’s research director Tim Lawless noted that available supply is a key factor in the diverse market outcomes, with cities like Brisbane, Adelaide and Perth experiencing supply levels over 30% below average.
The report also highlighted a slowdown in rental growth, particularly in the unit sector of major cities like Sydney, Melbourne and Brisbane.
While housing supply remains constrained relative to population growth, there are signs of rebalancing in some markets. The outlook remains complex, with affordability challenges growing in rapidly appreciating markets.