Sydney and Melbourne house value growth surge continues, but units slow: CoreLogic
House value growth in Sydney and Melbourne are showing no signs of slowing down, CoreLogic's latest monthly Home Value Index shows.
Sydney houses (+1.5%) just edged Melbourne again (+1.4). January was the sixth consecutive month where the two biggest property markets in the country saw house values grow by over one percent.
It was July 2019 when houses increased 0.2% in Sydney and 0.1% in Melbourne following the end of the 18 month downturn.
Melbourne's overall dwelling value however was stronger than Sydney over January, down to their better unit value growth.
The Victorian capital saw 0.7 per cent unit growth, compared to Sydney's fairly modest 0.3 per cent.
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Over December Sydney houses were up two per cent, while units posted one per cent gains over. Melbourne's houses saw 1.7 per cent gains, units 0.9 per cent.
CoreLogic head of research Tim Lawless said the positive year-end results mask what has been a year of two distinct halves.
"We saw capital city dwelling values fall by 3.8% over the first six months of 2019 and then rebound by 7.0% over the second half of the year.
“The housing value rebound was spurred on by lower mortgage rates, a relaxation in borrower serviceability assessments, improved housing affordability and renewed certainty around property taxation policies post the federal election.
"Lower advertised stock levels persisted providing additional upwards pressure on prices amidst rising buyer activity.”
Over December Sydney houses were up two per cent, while units posted one per cent gains over. Melbourne's houses saw 1.7 per cent gains, units 0.9 per cent.
January was a strong month across the board, with all capitals and territories seeing dwelling value gains, even the often problematic markets in Perth and Darwin.
Perth's 0.1 per cent gains was fairly evenly spread across houses and units, however Darwin was heavily reliant on their housing market, up 0.6 per cent, as the unit market declined -1.1 per cent over the month.
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It was the same case in Brisbane, where houses were up 0.7 per cent but units were down 0.6 per cent.
Hobart was the third strongest capital with a 0.9 per cent gain, evenly split across houses and units. The unit market drove Adelaide's total 0.2 per cent dwelling gains.
Sydney's house value is now 9.3 per cent up over the last 12 months, compared to Melbourne's eight per cent.
“A nominal recovery in housing values implies home owners are becoming wealthier, which may also help to support household spending", Lawless aded.
"However, the flipside is that housing affordability is set to deteriorate even further as dwelling values outpace growth in household incomes, signaling a set-back for those saving for a deposit.”