Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 3 January 2017

Capital city home prices up 10.9pc in 2016 (Perth & Darwin rebound?)

Capital cities lead growth

Home prices rose by 10.9 per cent in the capital cities in 2016.

The gains were largely concentrated in Sydney (+15.5 per cent) and Melbourne (+13.7 per cent).

In Sydney home values rose by $10,000 per month in 2016.

Brisbane was a clear two-speed market and recorded gains of only +3.6 per cent overall.

Australia's regional centres recorded moderate gains of +2.8 per cent.

In Perth home values are now 7.9 per cent below their 2014 peak, and in Darwin prices are down by 5.9 per cent cumulatively.

However, CoreLogic noted that both markets appear to be "moving through their low points" with both markets reporting strong gains in the last quarter of the year of +2.8 per cent and +5.9 per cent respectively.

These figures seem to be at odds with low sentiment and high vacancy rates, but will be interesting to watch in 2017.

Regional NSW performed well in parts but there was comparatively little joy elsewhere:

"The remaining rest-of-state regions showed relatively sedate conditions, with values rising by half a per cent across regional Victoria, 1 per cent across regional Queensland and 1.1 per cent across regional South Australia.  

Regional Western Australia recorded a 7 per cent fall in house values over the year."

You can find and download CoreLogic's full report here.