With the federal election imminent, CoreLogic Property Pulse takes a look at the changes in house values across Australia’s electorates.
It’s no surprise that Sydney and Melbourne experienced the greatest rise in values over the past 3 years.
In contrast, the country’s regional areas linked to the resources sector have lagged well behind.
With topics around housing such as affordability and taxation policy now featuring heavily in the lead up to the election, it’s worthwhile examining just how house values have shifted since the previous election.
Since the 2013 federal election we’ve seen a general increase in home values, largely fuelled by the Sydney and Melbourne markets.
The Sydney electorate of Bennelong recorded the greatest increase in house values over the past three years and increased by 73.5% over the period with values rising
23.0% over the past 12 months.
In stark contrast, the mining region electorate of Durack in Western Australia experienced a -21.0% drop in values over the past three years.
The 20 electorates to see the greatest increase in house values over the past three years were located in either Sydney or Melbourne.
This further highlights that the recent boom in housing has been focussed across these two cities reflecting the country’s economic performance of late.
While house value growth has been strongest in Sydney and Melbourne, the regions with the weakest three year house value changes are largely in regional parts of the country and linked to the resources sector.
Those areas located in capital cities are in Perth and Darwin (which have been impacted by the mining downturn), Hobart (the weakest performing capital city housing market over the past decade) and Canberra.
The mining story amongst the list of electorates with the lowest house value change is an interesting one.
Many of the electorates which have seen the lowest home values changes over the past three years are regions linked to the resources sector.
In the lead-up to the 2013 federal election these same electorates had seen some of the highest increases in home values on the back of surging mining investment which propelled home values higher.
As the resource investment boom has faded, many of these regions have seen home values decline as the workforce has shrunk.
The value declines have been driven by a lack of demand for housing in these regions due to their heavy reliance on the resources sector.
It is a little surprising those topics such as housing affordability, particularly in Sydney and Melbourne, and economic drivers of regional areas has not been at the forefront of the election campaign.
Perhaps these issues will become more prominent over the final weeks of the election campaign.