An increase in Australia’s combined capital city home values of 6.4% over the past 12 months is today broken down.
While combined capital city home values increased by 6.4% over the past 12 months, by analysing the rate of capital gains across different valuation brackets, the result reveals the differences in the rate of dwelling value appreciation.
Using the CoreLogic RP Data Stratified Hedonic Index as the basis for today’s analysis, the most affordable quarter of suburbs recorded annual value growth of 6.6% compared to a 6.4% rise across the middle market, and a 7.0% rise across the most expensive suburbs.
While the annual figures show the most expensive suburbs recorded the strongest value growth over the past 3 months, value rises have been more uniform and with little difference between the broad value-based segments of the market.
Across the most affordable suburbs, we’ve seen values move 1.8% higher over the March quarter followed by the most expensive suburbs move by 1.7%, and the middle market suburbs by 1.6%.
Note: Across individual capital cities, this data is also published however, it is only available across the 5 largest capital city markets: Sydney, Melbourne, Brisbane, Perth & Adelaide.
Sydney: Home values across the city increased by 7.4% over the past year after annual growth peaked at 18.4% in July 2015.
Over the past year the most affordable suburbs have seen values rise by 8.0%.
The middle market values are 6.6% higher and the most expensive suburbs have recorded value rises of 8.8%.
The annual rate of value growth is slowing across each segment, however the premium end of the market continues to record higher rates of capital gain.
Melbourne: Recorded home value growth of 9.8% over the past year, down from a recent peak of 14.2% in September 2015.
The most affordable suburbs recorded value rises of 9.7% compared to 10.5% across the middle market and 10.0% across the most expensive suburbs.
Growth is fairly steady across the affordable market but slowing across the middle and most expensive suburbs.
Brisbane: Home values increased by 4.5% over the past year with the rate of value growth higher than it was a year ago.
The most expensive suburbs recorded value growth of 4.6% over the past year compared to a 5.1% rise across the middle of the market.
The most affordable suburbs saw a 5.7% rise. Annual rates of growth are generally trending higher across each segment.
Adelaide: Home value changes have been fairly steady having increased by 3.2% over the past year.
The most expensive suburbs saw values rise by 3.2% compared to a 3.1% increase across the middle market and a 2.9% increase across the most affordable suburbs.
Across each segment growth is fairly steady with the rate of capital gain holding reasonably firm over the past twelve months.
Perth: The only major capital city to see value falls over the past year, however, the annual rate of decline has started to improve, easing from – 4.1% in November 2015 to the current annual decline of -2.0%.
Across the broad valuation segments, home values have fallen -0.5% across the most affordable suburbs, and are -1.5% lower across the middle market and 2.1% lower across the most expensive suburbs.
Across each segment values are still falling but the rate of decline in values has slowed.
The CoreLogic RP Data Stratified Home Value Index highlights the importance of looking beneath the broad headline figures.
Markets within a city can be performing quite differently to what the overarching statistics for a capital city market shows, not only across valuation based segments of the market, but also across housing types and geographically.
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