Australia’s capital city house prices continued to set new record highs in June, led by the surge in dwelling values in Sydney and Melbourne, survey results from CoreLogic showed Friday.
The CoreLogic June Home Value Index for all capital cities rose 0.5 percent month-on-month in June.
Among the eight capital cities covered, Sydney, Melbourne and Hobart registered gains, while the remaining five witnessed declines. Prices rose 1.2 percent in Sydney and 0.8 percent in Melbourne. Hobart prices climbed 1.8 percent.
“Importantly, the pace of capital gains in June was substantially lower than the April and May results when CoreLogic reported a 1.7 percent, and 1.6 percent month-on-month lift in capital city dwelling values,” CoreLogic Asia Pacific Research Director Tim Lawless said.
“The monthly growth rate reduction is likely to be very much welcomed by state and federal government policy makers and regulators who may be concerned about a sustained rebound in capital gains.”
In the four years of growth, Sydney home values increased a cumulative 59 percent. Melbourne dwelling values surged 41 percent.
“While the higher rates of capital gains in Sydney and Melbourne can be tied back to strong economic conditions, and high rates of population growth, the same cannot be said for Hobart where economic conditions and migration rates are gradually improving from a low base,” Lawless said.
The strength in the Hobart market comes after a long period of underperformance as home values in the city grew only 1.4 percent over the last decade, he added.
“Potentially, the Hobart housing market is being fuelled by the sheer affordability of housing and a renewed trend towards Melbourne and Sydney buyers unlocking their equity to make lifestyle housing purchases,” Lawless said.
In the first half of the year, overall capital city house prices increased 5.5 percent from a year ago, led by Sydney, Melbourne and Hobart.
The material has been provided by InstaForex Company – www.instaforex.com