August puts a stop to national dwelling value growth: RP Data-Rismark
Dwelling values across Australia were unchanged in August, after values recovered slightly in June and July following the RBA’s back-to-back rate cuts.
"During the seasonally slower month of August, value growth flat-lined," RP Data research director Tim Lawless says.
While Adelaide was the strongest performer during August, it was not among the seven of Australia’s eight capital cities registering capital gains over the last three months.
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Source: RP Data
Improved affordability since June helped dwelling national values rise over the quarter, Lawless says.
"The big question is, ‘Can this growth be sustained?’
"On the one hand, winter is seasonally slow, so these results have been encouraging.
“On the other hand, we know that there is likely to be an increase in new supply over spring, which may introduce some headwinds for a recovering market.
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Source: RP Data
"How the market plays out over the spring season will be an important litmus test for its resilience,” Lawless says.
Dwelling values in both Sydney and Melbourne both increased by 0.1% in August, with the two biggest capitals recording 2.4% and 2.5% capital growth, respectively, over the last three months.
In August gains were also seen in Adelaide (+1.4%), where housing values had struggled in recent months, and Canberra (+1.2%).
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Source: RP Data
The markets weighing down the result were Brisbane (-0.2%), Perth (-1.2%), Hobart (-1.2%) and Darwin (-0.5%).
Sydney is proving to be one of the most consistent performing capitals this year.
“Sydney dwelling values have increased over five of the past eight months providing a cumulative capital gain of 1.9% over the year to date," Lawless says.
Canberra (+1.4%), Hobart (+3.9%) and Darwin (+8.4%) have also yielded owners capital gains over the first eight months of 2012.
By contrast, other capitals, like Adelaide (-1.3%, Brisbane (-1.4%), Perth (-2.5%) and Melbourne (-2.6%), have recorded tougher conditions this year, the index notes.
The year-on-year numbers have shown a substantial improvement although the eight capital city aggregate is down 2.4%.
