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Property prices are rising in most of Australia’s capital cities, but some are falling behind according to new research from CoreLogic.
The October Home Value Index found that there were only three capital cities that didn’t record a rise in median dwelling values during the three months to October 2016.
They were Hobart (with prices falling 2.8 per cent), Perth (-1.5 per cent) and Adelaide (-1.3 per cent)
All the other capital cities recorded decent price growth over the October quarter. Canberra led the charge with dwelling values up by 5.6 per cent, bringing the median value to $568,000.
Behind Canberra was Melbourne with a 4.6 per cent price increase, and a new median dwelling price of $600,000.
Following was Darwin (4.0 per cent to $465,500), Sydney (2.9 per cent to $800,000) and Brisbane (1.3 per cent to $470,000).
While some may have expected Sydney to take the property growth crown for the quarter, it still remains the stand out city based on annual capital gains where it has recorded the largest year-on-year increase of 10.6 per cent.
The CoreLogic Data showed that most cities are seeing a large divergence in house and unit growth, however Sydney seems to be the exception.
Sydney’s house values recorded a 10.9 per cent rise for the year, only slightly more than units at 9.1 per cent growth.
According to CoreLogic research director Tim Lawless this highlights the healthier supply/demand dynamic that exists across the Sydney region for higher density housing.
“This also points to higher demand for Sydney units considering how expensive Sydney houses have become. Units generally provide a more affordable option for home ownership and investment for many buyers, “ he said.
The divergence in price growth between houses and units was most evident in Melbourne and Brisbane.
Melbourne recorded a 9.6 per cent rise in house prices over the year, compared to 5.2 per cent for units.
Brisbane’s house and unit gap was even wider, with house values up 4.7 per cent, and unit prices down by 1.4 per cent over the year.
Mr Lawless noted that the difference in house and unit growth likely comes down to stock levels, with Brisbane having an influx of new units coming onto the market.
“The weaker performance of unit values across the Brisbane market may be partially attributed to supply concerns, as unit supply levels across key regions of Brisbane’s inner city show the potential for a significantly larger relative increase in existing stock levels when compared with Melbourne and Sydney,” he said.
Dwelling property prices across all capitals increased by 2.7 per cent over the October quarter.
The CoreLogic October Home Value Index can be read in full at www.corelogic.com.au.