Property prices in capitals across Australia have continued the upward projection seen at the close of 2019, with continued growth in each city.
The first month of 2020 showed the Australian housing market still has fire in its engine room as CoreLogic’s latest home value index revealed the median property price across Australia grew by 0.9 of a percentage point in January.
The updated annual growth rate is now 4.1 per cent, which is the fastest annual pace since December 2017.
All capital cities and regional parts of Australia, except for regional South Australia, saw growth last month, and CoreLogic’s head of research, Tim Lawless, believes this demonstrates a broader recovery trend which was initially sparked in Sydney and Melbourne.
The most robust growth last month was still seen in Melbourne and Sydney, with 1.2 per cent and 1.1 per cent growth, respectively. Meanwhile, Perth and Darwin just ticked in a positive direction with 0.1 of a percentage point growth.
Although there is still growth across each greater capital city statistical area, the momentum of that uplift has slowed in recent months.
The national dwelling index recently peaked at 1.7 per cent in November but was only 0.9 of a percentage point in January.
“Seasonal effects provide some explanation for the slowdown. The CoreLogic seasonally adjusted hedonic index implies the time of year shaves about one basis point of growth from the December reading and two basis points from the January reading,” Mr Lawless said.
“Factoring in the seasonal effect, the latest results indicate a reduction in the speed of growth across most markets, especially for Sydney and Melbourne, where affordability constraints are once again becoming more pressing. As advertised stock levels rise over the early part of the year, we could see some further dampening of growth rates.”