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Residential property values across Australia’s capital cities were virtually flat over the month of September, according to the latest RP Data CoreLogic Home Value Index. There was a 0.1% rise in values over the month which translates into a 2.9% capital gain over the third quarter of 2014. However, the flat result for September masks the fact that five of Australia’s capital cities recorded a fall in values over the month whilst only Sydney with growth of 0.8%), Brisbane with a rise of 0.7% and Adelaide up 0.9% recorded an increase in dwelling values over the month. The September quarterly was once again driven by exceptionally strong conditions across the Sydney and Melbourne markets where the quarterly capital gain rate was 4.1% and 3.7% respectively. Additionally, Adelaide recorded a solid increase in values over the September quarter, posting a 3.1% capital gain. Brisbane was up 0.6%, Darwin up 1.4% and Canberra also up 1.4%. But Perth saw a fall of 0.6% and Hobart was down 1%, the only two capital city markets to record a decline in values over the September quarter. Values are now 9.3% higher over the 12 months to the end of September 2014, with every capital city recording an increase in dwelling values over this period. Sydney values are driving the growth trend, increasing by 14.3% over the past year. The data shows that a substantial gap exists between Sydney and the next best performer, Melbourne, where values increased by 8.1%. Darwin was the third strongest performer over the past year with a 7.1% capital gain, followed by Brisbane at 6.4% and Adelaide at 5.8%. Hobart values were 4.6% higher over the past 12 months while in Perth values were 3.2% higher. Canberra recorded the lowest rate of annual capital gain at 1.7%. Despite the ease in capital gains over September, other indicators remained strong over the first month of spring. Auction clearance rates continued to beat the 70% mark week to week while volumes across RP Data real estate agent and valuation platforms remained strong which indicates heightened levels of industry and mortgage market activity. According to RP Data’s research head Tim Lawless, more listings are entering the market place as the weather warms up. He said that the big test for the housing market will be whether additional stock is absorbed by an increase in buyer numbers. ‘The annual rate of appreciation in dwelling values has actually been moderating since reaching a peak in April this year. The fact that the annual trend of capital growth has been trending lower is an important factor to note as it highlights that the rate of capital gain is no longer accelerating,’ he explained. ‘Even though housing market conditions remain very buoyant, we have been seeing the 12 month trend drifting lower since peaking at 11.5% in April. A moderating annual trend, as well as the relatively flat September result, is likely to be welcome news to policy makers and potential buyers after the… Continue reading →
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