Corelogic’s November home value index report shows home values continued to fall across Sydney, Melbourne and Perth in October.
Tighter credit conditions continue to contribute to slower housing activity, impacting adversely on the performance of housing values across most areas of the country.
Property values fell 0.5% in October, taking the annual decline across the national index to 3.5%. This signals the weakest macro-housing conditions since February 2012.
Monthly change in capital city values
Sydney values are down 7.4% over the past 12 months and Melbourne by 4.7%. Perth and Darwin also saw their values decline by 3.3% and 2.9% respectively, in a continuation of a downturn that has been ongoing since 2014.
•Hobart +0.9% +9.7%
•Adelaide +0.2% +1.8%
•Canberra 0% +4.3%
•Brisbane 0% +0.4%
•Darwin 0% -2.9%
•Sydney -0.7% -7.4%
•Melbourne -0.7% -4.7%
•Perth -0.8% -3.3%
Regional market trends
Regional housing markets have returned a diverse performance, with regional Tasmania standing out as the only broad region nationally where dwelling values are recording double-digit growth (+11.4%).
Both Hobart and regional Tasmania continue to record strong housing market conditions, driven by robust housing demand coupled with a shortage of supply.
Regional Victoria is also showing strong growth conditions as demand continues to ripple outwards from Melbourne towards the more affordable cities peripheral to the city’s metropolitan area.
Regional Western Australia continued to show challenging conditions with the annual pace of decline revealing some renewed momentum. Values there fell by 6.5% over the past twelve months. The September quarter saw values dropping in Regional NSW (-1.3%), Regional VIC (-0.2%), Regional QLD (-0.6%), Regional SA (-0.3%) and regional WA (-3.4%).
Brisbane, Adelaide & West Melbourne resilient
The latest data also shows that seven of the top 10 performing sub-regions are located across Brisbane and Adelaide metropolitan areas, demonstrating the resilience these two cities have to falling values. Melbourne’s west, where values are up 1.4% over the past 12 months is a notable exception as it is bucking the trend of falling values across greater Melbourne.
Tasmania & Victoria host top performing regions
Regional Tasmania and Victoria are performing well, with Tasmania recording 11% growth over the past 12 months. Five of the country’s top 10 hotspots for regional growth are in Victoria, where high rates of population growth, affordable housing and lifestyle factors are influencing strong growth.