Which property markets performed well in 2019 and which didn’t?

Dwelling values rose by 1.1% over the month of December and by 4.0% over the quarter to finish out 2019 on a positive note according to the CoreLogic national home value index

This result represents the fastest rate of national dwelling value growth over any three month period since November 2009.

December property values

The premium markets experienced the fastest rate of capital gains with the top quartile of capital city dwelling values rising by 5.6% in 2019 compared with a 1.1% fall across lower quartile properties.

This trend was most centric to Sydney and Melbourne: Sydney’s top quartile properties have recorded a 7.0% rise values over the year compared with a 1.4% lift in values across the lower quartile. Similarly, in Melbourne, top quartile property values are up 7.6% compared with a 3.7% rise in lower quartile values over the year.

The remaining capital cities are generally showing more uniform growth rates across the broad valuation cohorts.

In Brisbane, it’s the middle of the market recording the strongest growth conditions (+0.7% compared with a 0.1% rise across the lower quartile and steady conditions across the upper quartile), while in Adelaide it’s the lower quartile (+1.9% compared with a 2.2% drop across the upper quartile) and in Perth it’s the middle of the market that has seen values slightly more resilient to falls (-6.6% compared with a -7.4% drop across the lower quartile).

property prices

 

Looking around Australia

Thirty-three of the forty-six capital city SA4 sub-regions have recorded an annual rise in dwelling values through the 2019 calendar year, with the top performing sub-regions confined to areas of Melbourne and Sydney, while the weakest conditions have generally been across Perth and Darwin, as well as Melbourne’s Mornington Peninsula and Sydney’s Central Coast region.

Melbourne’s Inner East, with a median dwelling value of $1.195 million, is leading the charge, with values up 12.1% over the 2019 calendar year. Values remain 4.2% below their August 2017 peak, however, with such a rapid rate of growth, housing values in this area will reach a new record-high over the first two months of 2020.

On a quarterly basis, the vast majority of capital city sub-regions have moved back into positive growth territory.

Only four of the capital city sub-regions have recorded a quarterly decline in home values, comprised of Darwin and Perth’s North West, South East and Mandurah.

Regional markets have recorded a softer performance relative to their capital city counterparts.

Broadly, regional housing values were down half a percent in 2019 compared with a 3.0% rise in capital city values.

Across the forty-two non capital city sub-regions, twenty-three areas have recorded a rise in values over the calendar year.

The best performing regional areas were mixed and included areas of regional Tasmania, which remain extremely affordable for interstate buyers, as well as several coastal lifestyle markets and rural service centres.

On a quarterly basis, thirty-two of the non-capital city sub-regions recorded a rise in housing values, led by Victoria’s Warrnambool and South West region (+3.6%) and Tasmania’s Launceston and North East region (+3.5%).

The weakest housing values continue to be located within the broad ‘outback’ regions of Queensland and southern Western Australia where housing demand remains low due to the persistent drought and weak economic conditions.

Top and bottom ten Capital City regions

property values

Top and bottom ten Non Capital City regions

regional property values

 

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Tim Lawless

About

Tim heads up the Core Logic RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia. Visit www.corelogic.com.au


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