New South Wales, Victoria lead capital city dwelling value increase: CoreLogic
Dwelling value growth increase in Sydney and Melbourne is substantially higher than any other capital city, according to CoreLogic head of research Cameron Kusher.
He said the current housing market growth phase has really been all about Sydney and Melbourne.
"The change in capital city dwelling values over the current growth phase began to take off in June 2012," he said.
"Over this period, only Sydney and Melbourne recorded value rises greater than 21 percent.
“The rise in values has been supported by low interest rates and availability of mortgage finance however, other factors such as localised economic performance, population growth and foreign demand have driven the much stronger growth in Sydney and Melbourne than across the other capital cities.
“With the demand focused so much on New South Wales and Victoria, it’s not surprising values in Sydney and Melbourne have increased so much more than in the other capital cities.
“While steps have been implemented to cool mortgage demand, particularly from investors in Sydney and Melbourne, the data points to the fact that demand is unquestionably, very strong.
“Clearly with interest rates remaining at close to historic lows, further changes will be required in order to slow mortgage demand and dampen the increases in dwelling values being experienced in Sydney and Melbourne.”