Domestically property prices have increased in four consecutive months, CoreLogic data shows. In October, residential values rose by 1.2 percent, the highest monthly gain seen since May 2015. Sydney and Melbourne have mainly driven the increase in property prices, while growth has been reported in every capital city other than Perth.
“The stronger
rebound in Melbourne and Sydney can be attributed to a blend of
factors; tighter labour market conditions and stronger population
growth relative to the other capitals, coupled with the stimulatory
effect of the lowest mortgage rates since the 1950s, and improved
access to credit. Stamp duty exemptions for first home buyers
purchasing under specific price points have added additional stimulus
to housing demand”, according to CoreLogic research director Tim
Lawless
Since their low
point in May, Melbourne property values have risen 6.0 percent, while
Sydney prices have risen 5.3 percent in the same period. The other
major cities, other than Perth and Darwin, have seen varied quarterly
growth rates, both of which have seen reductions over the three
months to October.
Nevertheless,
CoreLogic shows that both cities are slowing down the rate of
reduction. The downtrend in home values in Perth and Darwin has
persisted, but both markets are showing a turnaround in the downward
trend pace.
“Demand for housing is responding to stimulus measures including mortgage, investment property rates that are now lower than anything we have seen since the 1950’s and improved mortgage serviceability tests following APRA’s decision to adjust the minimum interest rate serviceability rules in July this year.”
Mr. Lawless said,
“There has been a shortage of new listings for several years which
has likely resulted in some pent up demand from homeowners looking to
sell. Despite the improved selling environment, new stock additions
remain low for this time of the year, which is likely a reflection of
ongoing uncertainty and low confidence.”
The increases are
extensive and not limited to capital cities. 38 of the 46 capital
sub-regions have reported an increase in home prices over the past
three months, showing the extent of the current recovery of the
housing market.
ReadMore Here: Property Prices Up Nationally
