Vibrant property market conditions over the first 7 years of this decade could easily have many of us believing we’re again in boom times.
However, research by CoreLogic confirms that, with the exception of Sydney, capital gains performance was substantially lower than for the last decade; Sydney is the only city to have recorded higher levels of value growth this decade compared to last.
Between January 2000 and February 2007, capital city dwelling values increased by 98.2% compared to an increase of 44.9% over the period from January 2010 to February 2017.
So far this decade, dwelling values growth is less than half that over the same period last decade.
While values consistently moved higher over the previous decade, there has been very little growth in values so far this decade.
Capital Cities Snapshot – how do they stack up?
Sydney dwelling values increased by 61.1% compared to 78.3% over the same period this decade between January 2000 and February 2007.
Early in 2000 values rose rapidly before starting to fall in 2004.
By comparison, values fell early in this decade but have been trending higher since June 2012.
Sydney is the only capital city that has recorded a greater increase in values so far this decade compared to the previous decade.
Melbourne dwelling values increased by 95.6% between January 2000 and February 2007 compared to an increase of 55.1% so far this decade.
Brisbane dwelling values increased by a mere 6.6% since January 2010 compared to an increase of 147.2% between January 2000 and February 2007.
Similar to Brisbane, growth in Adelaide dwelling values has been much softer this decade compared to last.
Between January 2000 and February 2007, dwelling values rose 124.4% compared to an increase of 11.0% between January 2010 and February 2017.
Perth dwelling values declined by -3.3% between January 2010 and February 2017, by comparison they increased 199.4% between January 2000 and February 2007.
While values in Perth rose continuously throughout the first 86 months of last decade, they’ve declined since the end of 2014.
Hobart dwelling values increased by 198.0% while over the same 86 months so far this decade, values are just 3.4% higher, Growth in the Hobart housing market slowed shortly after February 2007 and has only recently started to show signs of a sustained recovery.
Darwin dwelling values increased by 97.3% between January 2000 and February 2007 compared to a fall of -5.0% between January 2010 and February 2017.
So far this decade growth has been sluggish with values having fallen since the middle of 2014; by comparison values trended higher throughout the previous decade.
Canberra, dwelling values have increased by 23.8% between January 2010 and February 2017 compared to an increase of 133.4% between January 2000 and February 2007.
According to research analyst Cameron Kusher, Sydney and Melbourne were the only cities to record dwelling value increases of more than 25% since the beginning of 2010.
As a comparison, the weakest growth in values between January 2000 and February 2017 was 61.1% in Sydney which is actually higher than the growth in all capital cities except for Sydney so far this decade.
Our research reinforces concerns around over-valuations in the housing market, if any, are very much focused within Sydney and Melbourne.
For the remaining capitals, the reality is that since the beginning of the decade there has been very little value growth.
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