Latest data from the Australian Bureau of Statistics (ABS) reports strong growth in home prices in the September quarter.
It reported a 2.4 per cent rise in capital residential property prices in the September quarter, compared to CoreLogic who reported a 2.2 per cent lift in the same period.
“Across each of the state capitals, the ABS has reported a slightly stronger result on price growth relative to the CoreLogic index,” CoreLogic head of research Tim Lawless said, “while quarterly results for Darwin and Canberra were higher on the CoreLogic method.”
The broad trend of the ABS report mirrored those CoreLogic revealed more than two months ago, he said.
“Sydney and Melbourne are leading the recovery trend, with housing values up by 3.6 per cent over the quarter, with a softer growth trend across most of the smaller capitals, while Adelaide, Perth and Darwin values drifted lower.”
The more significant differences between the two reports were noticed in Hobart and Canberra.
Tasmania’s capital recorded an increase in both reports, with prices up by 1.3 per cent for the quarter in the ABS report, but only up 0.4 of a percentage point in CoreLogic’s.
CoreLogic’s index showed an increase in the nation’s capital of 1.4 per cent, but it was a different story for Canberra in the ABS data, with prices down by 0.5 of a percentage point.
Although both groups utilise the same data to come to these slightly different conclusions, the way they process that information changes the results.
“The methodologies for cleaning and filtering the underlying transaction data are likely to be very different, and there are also likely to be differences in how property types are derived,” Mr Lawless said.
“Despite the differences, it’s clear that over time both series show very similar trends. The housing market is clearly on a strong recovery path in the largest cities and growth is now rippling out to many of the smaller capital cities.”