Two-tier property market highlights differences around the country
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Oct 4, 2016
Two-tier property market highlights differences around the country
Property prices in Sydney, Melbourne, Adelaide and Canberra achieved double-digit growth in the year to September 30, but Perth and Darwin saw prices fall 7% and 6% respectively, according to CoreLogic's Hedonic Home Value Index.
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Image by KazPeirce via Pixabay"With advertised stock levels close to record highs in Perth and Darwin, buyers now have a lot more choice when selecting a property and can negotiate hard on price,” says Tim Lawless of CoreLogic.
CoreLogic's Hedonic Home Value Index shows that the Australian property market is clearly following two different paths.
Property prices in Sydney, Melbourne, Adelaide and Canberra achieved double-digit growth in the year to September 30, but Perth and Darwin saw prices fall 7% and 6% respectively, according to the index.
For the month of September, prices kept falling in Perth and Darwin, with Perth recording a 2.5% decline, and Darwin seeing prices fall 2.2%.
By contrast, Canberra prices rose 2.4% in September, Adelaide prices rose 2.1%, and Melbourne prices were up 2.3%. Prices in Sydney, Brisbane, and Hobart were virtually flat.
CoreLogic head of research Asia Pacific, Tim Lawless, said prices are still rising in Sydney and Melbourne because there were low levels of advertising housing stock. There are fewer than 20,000 dwellings currently being advertised for sale in Sydney, or less than half the number of properties listed for sale five years ago. Lawless said, “Reduced stock levels create urgency in the market, adding to the upwards pressure on dwelling values.”
Lawless said sharp declines in migration in Perth and Darwin were contributing to weaker property prices. “In markets like Perth and Darwin, where dwelling values have been falling consistently, the slowdown in transaction numbers is related to demand, which is evidenced by the higher number of homes available for sale, as well as the sharp slowdown in migration rates. With advertised stock levels close to record highs in Perth and Darwin, buyers now have a lot more choice when selecting a property and can negotiate hard on price,” he said.
“Many factors are at play across Australia’s housing market. In fact, there isn’t just ‘one’ single housing market nationally, there are a multitude where conditions vary substantially by way of geography, housing type, and price point,” said Lawless.
See also:
Eastern seaboard states drive population growth
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