Capital city dwelling values rise in November

According to the CoreLogic Hedonic Home Value Index for November, dwelling values in all capital cities, besides Melbourne report a rise over the month. In spite of this, the overall growth rate has moderated when compared with recent months’ performance.

During November, capital city dwelling values rose by 0.2%, which is the softest capital gain experienced since December 2015. This is mainly due to Melbourne’s decline in dwelling values with a fall of -1.5%. For combined regional areas, house values fell by -0.2% across November.

Over the three months of Spring, capital city dwelling values rose by 1.7%, which compared to Spring 2015 which saw a fall of -0.2% is a substantial improvement. Sydney saw 2.3% growth, Melbourne had 1.5%, whilst Brisbane experienced 1.3% growth.

For November, Darwin had the greatest change in dwelling values with an increase of 3.7%, followed by Adelaide (2.9%) then Hobart (0.9%). Sydney saw an increase of 0.8%, whilst Brisbane had a 0.4% increase in dwelling values. Melbourne saw a decline of -1.5%.

However, year on year, Sydney still has the highest change in dwelling values of 13.1%, followed by Melbourne with 11.3% and then by Hobart with 8.5%. Brisbane saw a gain of 3.9%.

Perth is still the weakest performing city with -3.4% fall year on year and -1.1% for the quarter.

Sydney

The median price for Sydney dwellings in November now sits at $845,000, with houses priced at $990,000 and the median unit in Sydney is $715,000. Both houses and units have seen strong growth over the year with the total return year on year 17.0% and 15.4% respectively. However, rental yields are currently at their lowest point with houses fetching 2.8% and units slightly better at 3.8%. Sydney and Melbourne both share the lowest yield profile for houses, whilst Sydney now has the lowest unit rental yield.

Melbourne

November saw a fall of -1.5% for all dwellings with houses falling -1.3% and units by -3.2%. The median dwelling price in Melbourne currently sits at $623,500 with houses priced at $695,000 and the median unit price is now at $503,200. Melbourne is still far more affordable compared to Sydney’s property prices. However, just like Sydney, Melbourne has the lowest rental yield for houses at 2.8% out of all capital cities, whilst Melbourne’s units sit par with Perth at 4.1%.

Brisbane

Out of all three east coast capital cities, Brisbane remains the most affordable city for property. The median dwelling price in November was $485,000, with houses at $520,000 and units $390,000. Rental yields are strong here with houses at 4.1% and units seeing a rental yield of 5.2%, the third highest after Hobart and the Gold Coast. Year on year, houses in Brisbane experienced a gain of 8.8%, whilst units saw a rise of 4.5%.

Despite low rental yields, investors are still investing in property, “ABS housing finance data showing a consistent rise in finance commitments for investment purposes since may this year”, says Tim Lawless, CoreLogic head of research.

“Clearly investors are continuing to see housing as the preferred investment option, despite low yields and a mature growth cycle”, Mr Lawless says.

Even though the number of settled sales have risen to the highest level in a year, every state and territory has seen a reduction in settled sales over the past 12 months, with the greatest fall in Victoria with a 14.9% year on year decline. With the population continuing to rise this will put pressure onto the availability of housing and the need for more residential housing to cater for our future residents.

To learn about the property markets in Sydney, Melbourne and Brisbane and what new projects are available to buy today, give the team at iBuyNew a call today to discover more. Simply call us on 1300 123 463 and one of our expert Property Consultants will be able to assist you further.
Published on 5th of December 2016 by Marty Stanowich
Marty Stanowich
Marty Stanowich

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