Melbourne leads as Sydney fades

Posted on 9/11/2016  
Melbourne leads as Sydney fades

The latest price data from SQM Research provides further confirmation that Sydney growth is fading and Melbourne is now the national leader on capital city prices.

Louis Christopher’s SQM is one of three major research entities to report a low rate of annual growth for Sydney houses and to rank Melbourne the market leader.

SQM’s latest Asking Prices Index records 3% annual growth for Sydney houses. The latest figures from Domain and from Residex report Sydney growth at 2%.

This correlates with the slowdown in sales activity revealed by Hotspotting research. The Sydney market remains resilient but is undoubtedly well past its peak.

Melbourne, on the other hand, is up 12.9%, according the Asking Prices Index. SQM also rates Hobart highly, up 9.7% (although other researchers have lower rates of growth for Hobart).

SQM reports growth in the 2% to 4% range for Canberra, Brisbane and Adelaide – which is broadly in line with most other major research sources.

Also in keeping with other reports are the rankings for Perth (down 5.4%) and Darwin (down 6.4%). These markets have been in decline for the past three years.

The capital city average growth rate is 4.8%, according to SQM. Domain and Residex both suggest a city growth rate around 3.5%.

Only CoreLogic among the major research entities has higher growth rates for Sydney and capital cities generally – but those figures have been dismissed by the Reserve Bank and others as being over-inflated.

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