Rising home values are becoming more widespread, with four out of five house and unit markets recording a rise in prices over the three months to October 2023.
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According to CoreLogic’s Mapping the Market report, 83.1 per cent of house markets and 80.6 per cent of unit markets saw values rise in the past three months.
In raw numbers, that means that 4,506 house and unit suburbs have prices on the rise, while 792 (or 17.6 per cent) are seeing values fall.
The data also revealed that capital city markets are dancing to the beat of their own drum. Perth is the strongest market, with 98.1 per cent of the house and unit markets across the Western Australian capital rising in value over the past three months, and 96.3 per cent of its suburbs at record high values.
Hobart and Darwin, meanwhile, are experiencing the opposite trend, with prices either flat or declining across the Tasmanian and Northern Territory capitals.
“It’s often noted that Australia is not ‘one housing market’ and we’re currently seeing increased diversity in capital city market performance,” said CoreLogic’s head of research, Eliza Owen.
“At one end of the spectrum, suburb-level analysis reflects the extraordinary growth trend across cities like Perth, Adelaide and Brisbane. In these cities, total listings levels are low, city-wide capital growth is running a bit over 1 per cent per month, and migration trends from both overseas and interstate favour more housing demand,” Ms Owen noted.
The country’s biggest markets, meanwhile, are operating at more of a “mid-speed” according to Ms Owen. Sydney and Melbourne saw city-wide capital growth sitting at 2.5 per cent and 1.2 per cent respectively over the course of the quarter.
“The pace of growth across [Sydney and Melbourne] markets has slowed from the middle of the year, when the June rate hike surprised financial markets and many economists’ predictions,” Ms Owen explained.
“Currently, growth in Sydney markets are strongest across relatively expensive house markets, with Five Dock houses topping the three-month capital growth ranking (up 8.4 per cent). In Melbourne, it was the more mid-priced unit market of Moorabbin which topped the list, increasing 7.4 per cent.”
It’s a very different story in Hobart and Darwin, however, where 41 per cent of house markets saw a quarterly decline.
Ms Owen said overall, Hobart home values ticked 0.3 per cent higher in the past three months, but capital growth trends have been shaky, and total listings are trending around 47 per cent higher than the previous five-year average.
“The city has seen value falls recorded in three of the past six months. Declines across Hobart houses were led by a -3.2 per cent fall across the relatively expensive market of Sandford.
“Canberra has also seen relatively flat capital growth trends, and particular weakness in the unit market. Thirty-two of 39 unit markets analysed in Canberra saw a quarterly decline, with the steepest fall in O’Connor, down -4.1 per cent,” she said.
Across regional markets, CoreLogic reported that conditions are equally diverse, with regional Queensland the strongest house market and regional South Australia the best performing unit market.
ABOUT THE AUTHOR
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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