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Australian dwelling values have increased for the first time in almost two years, new data has shown.
CoreLogic’s August home value index has found that Australia-wide, dwelling values increased by 0.8 of a percentage point over the month.
It’s the first property value increase since October 2017, and it also represents the biggest value rise since April 2017.
The improvement means the recent recovery of housing values “accelerated” over the month.
“The lift in housing values through August was substantial; however, the recent growth is a continuation of the trend seen throughout the year whereby value falls were consistently losing momentum, and have now started to rise,” it was reported.
For CoreLogic’s research director, Tim Lawless, “the significant lift in values over the month aligns with a consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remains low”.
It is likely “that buyer demand and confidence is responding to the positive effect of a stable federal government, as well [as] lower interest rates, tax cuts and a subtle easing in credit policy”, he continued.
Housing value increases were reported by CoreLogic for Sydney (1.6 per cent), Melbourne (1.4 per cent), Canberra (0.8 of a percentage point), Hobart (0.5 of a percentage point) and Brisbane (0.2 of a percentage point).
Only three capital cities — Adelaide (-0.2 of a percentage point), Perth (-0.5 of a percentage point) and Darwin (-1.2 of a percentage point) — recorded value losses.
Despite stronger city values, CoreLogic said that across the rest-of-state regions, only Victoria, Tasmania and the Northern Territory also saw value increases for the month.
It was the third successive month of capital gain in Sydney, Melbourne and Hobart, and the second successive monthly increase in Brisbane, Mr Lawless also noted.
“While the ‘recovery trend’ is still early, it does appear that growth trends are gathering some pace, particularly in the largest capital cities,” the researcher said.
Over the rolling quarter, there’s been a national 0.6 of a percentage point lift, which is the first rise in values over a three-month period since November 2017, CoreLogic reported.
Based on the three-month figures, combined capital city dwelling values have increased by 1.0 per cent over the past three months while combined regional market values have continued to trend lower and are down by 0.6 of a percentage point, according to the housing data provider.
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