Australian dwelling values still falling

Australian dwelling values still falling

The first month of 2019 did not see Australia’s housing markets improve, with CoreLogic recording month-on-month falls in dwelling values in every capital city apart from Canberra.

From the end of December 2018 to the end of January 2019, CoreLogic’s hedonic home value index recorded a further 1.0% decline in national dwelling values, meaning that dwelling values are now 6.1% down from the peak in October 2017.

According to CoreLogic, the national index has fallen over 13 of the past 15 months and national dwelling values are now back to levels last seen in October 2016.

The national decline was found to have been primarily been driven by the falling markets in Sydney and Melbourne, where values were found to have dropped by at least 1% month on month since November 2018. This rate of declined was found to have accelerated over the past three months,

Looking at the other capitals, only Canberra was found to have avoided a month-on-month fall in housing values, and only Canberra and Hobart saw rising values over the past quarter.  

Outside the capital cities, markets appeared to be slightly healthier, with the nation’s combined regional areas recording much smaller declines in dwelling values than the combined capitals.

CoreLogic hedonic home value index results as at 31 January 2019

Area Change in dwelling values (month) Change in dwelling values (Quarter) Change in dwelling values (Annual) Total return Median value
Sydney -1.3% -4.5% -9.7% -6.5% $795,509
Melbourne -1.6% -4.0% -8.3% -5.1% $636,048
Brisbane -0.3% -0.4% 0.0% 4.0% $494,345
Adelaide -0.3% -0.1% 0.9% 5.4% $430,711
Perth -1.1% -2.7% -5.6% -1.9% $441,920
Hobart -0.2% 1.0% 7.4% 12.9% $457,785
Darwin -1.7% -2.8% -3.5% 2.3% $412,940
Canberra 0.2% 0.8% 3.8% 8.5% $596,933
Combined capitals -1.2% -3.3% -6.9% -3.5% $604,173
Combined regional -0.2% -0.6% -0.8% 4.2% $377,422
National -1.0% -2.7% -5.6% -1.9% $528,553

Source: CoreLogic

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