Sydney and Melbourne property markets take top three spots in recovery: CoreLogic

The recent trend across the regional markets of Australia has seen a clear improvement in the performance of housing across the major centres adjacent to Sydney and Melbourne, as well as rising values in many of the coastal lifestyle markets, according to the latest CoreLogic home value index for October.

Conversely, the report found drought-affected areas have seen a drop in demand for housing with values falling sharply across many of the rural sub-regions associated with crops and grazing.

Mr Lawless said focusing on housing market conditions across the broad value-based cohorts highlights that the market recovery is being led by the most expensive quarter of the market, although values are also rising across the more affordable strata as well, just not as rapidly.”

"Across the combined capital cities, values within the top quartile were up 5.3% over the three months ending October 2019, while the broad middle of the market was up 2.6% and the lower quartile was up 0.7%."

“These ‘macro’ figures are influenced by stronger housing market conditions in Sydney and Melbourne where housing values are inherently higher, however the trends are reflected at a sub-regional level as well,” Mr Lawless said.

Over the three months ending October 2019, the fastest appreciation in capital city home values has been across the top quartile of Melbourne and Sydney where values were 7.1% and 5.9% higher.

The next best performing sectors were also in Sydney and Melbourne, with the broad ‘middle’ of the market recording a 4.6% rise in Sydney and 4.5% rise in Melbourne.

The lower quartile of Sydney and Melbourne dwelling values were the sectors that recorded the third largest rise over the past three months, up 3.2% across Sydney’s lower quartile and 3.8% higher across Melbourne’s lower quartile.