Housing values across Australia have reached an annual 4.1 per cent growth, according to the CoreLogic home value index which saw a 0.9 per cent increase in the first month of the year.

This is the fastest pace of growth for a twelve month period since December 2017, according to CoreLogic head of research Tim Lawless.

Housing values rose in January across every capital city and rest-of-state region, apart from regional South Australia, where values held firm over the month.

Sydney and Melbourne

Mr Lawless said this demonstrates a broader recovery trend which originally began in Sydney and Melbourne midway through 2019, and gradually spread to other areas of the country. 

"Across the capital cities, Sydney and Melbourne continued as the leaders for capital gains after recording more substantial declines during the recent downturn," said Mr Lawless.

Perth

For Perth home owners, the latest results deliver positive news.

Housing values are slowly emerging from a slump lasting five-and-a-half years, as dwelling values edged 0.1 per cent higher over the month.

Perth dwelling values posted their first rise over a rolling quarter (+0.4 per cent) since a brief period of growth in May 2018.

Darwin

Darwin, where dwelling values have been consistently falling to be almost 32 per cent below their 2014 peak, also recorded a subtle rise (+0.1 per cent) in January. 

Mr Lawless told WILLIAMS MEDIA that Darwin’s very high rental yields is a factor of rental prices falling at a slower rate relative to housing values. 

"Rents were down 1.9 per cent over the past twelve months compared with an 8.1 per cent decline in dwelling values," said Mr Lawless.

"So, while the rental yield is high, the vacancy rate is also high and prospects for capital gains remain limited. 

"Long term, with Darwin dwelling values down about 32 per cent from their 2014 peak, this market will have some upside, but at the moment it looks like the Darwin downturn has further to go."

Hobart

"Values increased by 1.1 per cent and 1.2 per cent over the month respectively, while Hobart (+0.9 per cent) achieved a higher growth rate relative to most other regions.  

"The remaining capital cities generally saw a mild rise in values over the month."

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Source: CoreLogic

Highlights over the three months to January 2020

Best performing capital city: Sydney +5.6 per cent
Weakest performing capital city: Darwin -1.6 per cent
Highest rental yield: Darwin 5.8 per cent
Lowest rental yields: Sydney 3.0 per cent

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