Taylor Scott International News
Property values across Australia’s capital cities fell by 0.3% in November compared with the previous months as growth continues to slow, according to the latest index. Home values rose in Sydney by 1%, in Brisbane by 0.4%, in Perth by 0.9% and in Hobart by 0.2% but fell across the remaining capital cities, the data from the CoreLogic RP Home Value Index shows. Research analyst Cameron Kusher said this recent slowdown in the rate of capital growth is further highlighted by the fact that over the three months to November 2014, values rose by just 0.8% across the combined capitals. Over the three months, values increased in Sydney, Brisbane and Perth but fell across all other capital cities. The slowdown in capital growth is further evident when looking at annual growth rates. Although combined capital city home values increased by a healthy 8.5% over the 12 months to November 2014, the annual growth rate is now at its lowest level in the year. The data shows that the rate of annual home value growth across the combined capital cities continued to slow after peaking at 11.5% over the 12 months to April 2014. Excluding Hobart, across each capital city the annual rate of capital growth is now lower than its recent peak. Kusher said this suggests that most cities have now moved past their cyclical peak. ‘Importantly, this has become apparent in the two largest capital cities of Sydney and Melbourne, where annual value growth peaked at 16.7% in April 2014 and at 11.9% in January 2014 respectively,’ he explained. ‘Although Sydney and Melbourne appear to have moved through their peaks, capital growth these two cities have consistently been the main driver of value growth over the past 12 months,’ he added. A breakdown of the figures shows that over the past year, Sydney home values increased by 13.2% and Melbourne home values rose by 8.3%. Sydney has seen much stronger growth over the year than Melbourne. However, Melbourne’s growth remains quite higher than the third strongest performing city for capital growth, Brisbane. Brisbane home values increased by 6% over the past year while Hobart at 5.2% is the only other capital city to record annual value growth in excess of 5%. ‘Market indicators such as auction clearance rates remain quite strong, but also point to slightly weaker overall housing market conditions,’ Kusher said. Auction clearance rates reduced noticeably across the two largest auction markets, Sydney and Melbourne, over recent weeks while clearance rates were typically recorded at around the high 70% and mid 70% mark respectively at the start of Spring. Clearance rates are now sitting at a low 70% in Sydney and mid 60% in Melbourne. The number of new properties listed for sale across the combined capital cities continues to trend higher. Although this occurred throughout the last two months, Kusher pointed out it wasn’t until recently that the total number of property listings also started to trend higher. ‘This may indicate a slower rate of sale and is… Taylor Scott International
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