Non-capital city housing markers a real mixed bag

Monthly regional market analysis which is complementary to the CoreLogic home value capital city market index shows that dwelling values across the combined regional housing markets remained relatively unchanged. 

Prepared by CoreLogic research analyst Cameron Kusher, while the research showed that dwelling values were flat in October, they fell by -0.1% over the quarter and were 4.9% higher over the past 12 months.

The quarterly decline in values was the largest fall since the three months to October 2014 while the 4.9% annual change was the lowest annual change since February 2017.

While the data indicates that the rate of dwelling value growth is slowing, there are some differences occurring across the regional markets of the states and territories.

Regional NSW

Dwelling values increased by 0.2% in October 2017 to be 0.7% higher over the three months to October 2017 and 9.7% higher over the past year.

Monthly, quarterly and annual growth rates are slowing however, regional NSW has recorded faster annual growth than Sydney over the past two months.

Regional Vic

The 0.3% increase in values in October was the greatest monthly increase since April of this year.

Over the past three months, values are -0.3% lower while over the past year they have increased by 4.4%.

At 4.4% annual growth, the regional areas of Vic are growing at a much slower pace than Melbourne where values are 11.0% higher over the year.

Regional Qld

Dwelling values were -0.2% lower over the month however, they fell by -0.5% over the quarter and were 1.6% higher over the past year.

Regional Qld dwelling value growth has continued to underperform the quite moderate growth in Brisbane as regions outside of the south-east corner continue to drag on the performance.

Regional SA

Dwelling values fell by -0.5% over the month, were -2.1% lower over the quarter and -0.9% lower over the past year.

While dwelling values are increasing at a moderate pace in Adelaide, outside of the capital city housing demand is much weaker leading to value falls.

Regional WA

While Perth values have not fallen for two months, in Regional WA, dwelling values fell -0.4% in October, they were -1.4% lower over the quarter and -3.0% lower over the year.

This indicates that regional WA values have fallen at a slightly faster pace than Perth values over the past year.

Regional Tas

Values were 0.3% higher in October 2017, -0.4% lower over the three months to October and 5.4% higher over the year.

Although annual value growth was much slower than in Hobart, it has accelerated from an increase of 1.7% a year ago.

Regional NT

Values rose by 1.1% over the month to be 0.7% higher over the past three months and 1.3% higher over the year.

Although growth is still minimal, it is significantly greater than the -5.7% fall in

Darwin values over the year.

Growth in regional dwelling values generally continues to lag capital cities however, in most states the growth in values of regional property markets are generally stronger than they have been over recent years.

About Cameron Kusher Cameron Kusher is Corelogic RP Data’s senior research analyst. Cameron has a thorough understanding of the fundamentals such as demographics, trends & economics. Visit www.corelogic.com.au