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Sydney, Melbourne alone in post-GFC prosperity fest

Sydney, Melbourne alone in post-GFC prosperity fest

Australia
by Sasha Karen 0 comments

Property managers may be surprised to learn that while on the whole dwelling values are up around the country in the period post the GFC, individually only Sydney and Melbourne have actually prospered.

Sydney and Melbourne have seen their dwelling values prosper, while other capital city markets have not been as lucky, the latest CoreLogic Property Pulse has found.

It shows that Sydney has recorded the highest dwelling value growth over the last 10 years, at 79.3 per cent, followed by Melbourne at 72.4 per cent growth. Likewise, regional NSW and Victoria recorded high levels of dwelling value growth, with regional Victoria leading at 42.7 per cent, followed by regional NSW with 36.3 per cent.

In terms of capital cities, following the powerhouses was Hobart at 29.5 per cent growth, Canberra at 23.8 per cent growth, Adelaide at 19.1 per cent growth, Brisbane at 10.3 per cent growth and Darwin at 5.4 per cent growth.

The regional markets saw smaller capital growth rises, with regional Northern Territory following NSW and Victoria at 31.8 per cent, then regional Tasmania at 16.3 per cent and regional South Australia at 4 per cent.

Dwelling value declines were recorded in Perth at 6.9 per cent, regional Queensland at 5.1 per cent and regional Western Australia at 29.5 per cent.

Looking back at when the GFC hit, CoreLogic analyst Cameron Kusher said that values most notably fell in 2008 and began to rise in 2009.

“The declines were fairly short and sharp,” Mr Kusher said. “The declining housing market was reversed due to two main factors: a swift reduction in mortgage rates and the introduction of government stimulus including additional first home buyer incentives, which helped stimulate growth in demand and subsequently values.

“During the GFC downturn, all regions of the country recorded declines, with national values falling by 7.9 per cent between February 2008 and January 2009.”

The next significant decline was then seen again between 2010 and 2012, with slightly different timings for each individual market, with values falling by 6.5 per cent.

In recent times, Mr Kusher said that softer housing market conditions are prevalent.

Softer housing market conditions have become evident, with a number of regions starting to see values decline at 0.7 per cent below their peak, with the combined capital cities to blame at below 1 per cent of their peak.

Mr Kusher said: “With dwelling values now falling in a number of regions, it will be interesting to see how rapidly values fall, what may or may not be done to slow the falls, and how the market declines will compare to other periods of decline over the past decade.”

Sydney, Melbourne alone in post-GFC prosperity fest
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