Values Rising In Half The Nation

Posted on 2/11/2018  
Values Rising In Half The Nation

Half of Australia has recorded a rise in dwelling values over the past year, new analysis shows, contrary to frequent headlines claiming prices are falling across the nation.

According to CoreLogic, around half of the SA4 sub-regions (the ABS divides Australia into 88 sub-regions for the collection of data) have recorded a rise in property values.

“With housing values falling in some of the capital city markets, it’s easy to forget there are some housing markets around the country that are actually seeing healthy and sustainable growth conditions,” says CoreLogic’s Tim Lawless.  

“An analysis of Australia’s 88 SA4 sub-regions shows 42 of them have recorded some level of growth in housing values over the past 12 months.”

Half of these regions have recorded a rate of capital gain higher than their five-year average rate, suggesting some acceleration in market conditions over the past 12 months.  

Regional areas of the country are much more likely to be showing positive growth conditions, with 57% of all regional areas recording a rise in dwelling values over the past 12 months, while only 39% of the capital city sub-regions recorded a rise. 

The better conditions in regional markets can be attributed to a range of factors, including:

  • More sustainable conditions during the growth phase – most regional areas have seen relatively sedate market conditions compared with the big gains in Sydney and Melbourne.  The more sustainable history of price growth has helped housing affordability and made these markets attractive to migrants. 
  • A ripple of demand emanating from the largest capitals towards the satellite cities where housing is generally more affordable and lifestyle factors can be appealing.
  • Many coastal and lifestyle markets benefiting from a rise in buyer demand, either from those looking for a new residence, second home or investment option.
  • Many of the hard-hit mining regions showing signs of a return to growth.

“Some of the capital cities are also showing a broad base to rising values as well,” says Lawless.

“In Brisbane, seven of the nine sub-regions have seen a rise in values over the past year and in Adelaide three of the four sub-regions have recorded an annual gain, whereas only one of Sydney’s 15 sub-regions (Central Coast) has recorded an annual rise in dwelling values while in Melbourne only four out of nine SA4 regions have recorded an annual rise.

“The sub-region data highlights the diversity across Australia’s housing markets.  While conditions are broadly slowing, especially around Sydney and Melbourne, many areas of the country are benefitting from a history of more sustainable growth rates, improving demand and reasonably strong economic conditions.”

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