Sydney still leading australian property prices

Photo credit: 8LettersUK

Sydney is still leading Australian property price growth, according to new figures, as the city's housing market continues to accelerate ahead of the rest of the country.

Dwelling values moved 0.3 per cent higher in August across CoreLogic RP Data’s combined capital cities index, but Sydney remained out in front with growth of 1.1 per cent month-on-month.

Dwelling values also edged up in Adelaide (0.7 per cent) and Darwin (0.3 per cent), and were flat over the month in Melbourne and Brisbane. The remaining capital cities recorded a month-on month fall in dwelling values.

The figures indicate a slowdown in the rate of growth, particularly compared to previous rises, but the quarterly figures highlight just how strong the housing market has been over the past three months; combined capital city dwelling values are 5.3 per cent higher over the three months to the end of August this year.

Dwelling values across Melbourne, meanwhile, are 8 per cent higher over the rolling quarter, and Sydney values are up 7.4 per cent.

While the three largest capital cities, together with Hobart, have all recorded growth in dwelling values over the past three months, though, half the nation’s capital cities have recorded a fall in values. Darwin recorded the most substantial decline in values with a fall of 3.2 per cent over the three month period, while Perth values were down by 1.5 per cent, Canberra values were 0.8 per cent lower and Adelaide values are slightly lower, at 0.1 per cent.

According to  ‎Head of research Tim Lawless, the annual rate of growth highlights how strong Sydney housing market conditions have been: the city's values are now  17.6 per cent higher over the past year, and since the beginning of 2009, Australia’s largest capital city housing market has recorded a cumulative capital gain of 76 per cent.

According to Mr Lawless it has generally been the case throughout this cycle, and previous cycles, that house values have risen at a faster rate than apartment values.

"However, over the past three months across every capital city except Melbourne and Brisbane, it has been the apartment sector that has shown the stronger growth result," he said. "This result comes at a time when apartment supply has ramped up substantially more than detached housing supply. To see such a broad-based over performance of units relative to houses, provides some comfort for developers and purchasers that higher density stock values are appreciating."