House values in Sydney and Melbourne jumped by 1.9 per cent in September as other capital city property markets struggled to gain traction on the back of the Reserve Bank’s cuts in official interest rates.
Ahead of Tuesday’s RBA board meeting, at which rates are tipped to be sliced to 0.75 per cent, CoreLogic reported the nation’s two largest property markets had outstripped the rest of the country.
In Sydney, the median house value is now back over the $900,000 mark. It jumped by $23,000 alone through September to be $34,000 above its most recent low point in May.
Over the past three months, Sydney house values have lifted by 3.6 per cent although they are still down by 0.9 per cent so far this year.
Melbourne’s median house value has returned to $729,000, a $20,000 increase on where it stood at its recent low point in June. It has lifted by 3.4 per cent over the quarter but is still 1.9 per cent down through 2019.
Unit values in both cities also improved, up by 1.4 per cent in Melbourne and by 1.1 per cent in Sydney.
Sydney and Melbourne median house values lifted by 1.9 per cent in September on the back of the RBA’s recent cuts in interest rates.CREDIT:HENRY ZWARTZ
Nationally, housing values lifted by 0.9 per cent, the largest monthly gain since March 2017, due largely to Sydney and Melbourne.
CoreLogic’s head of research Tim Lawless said the Victorian and NSW markets were being pushed along by key economic factors.
“While all regions are benefiting from low mortgage rates and improved access to capital, economic and demographic conditions in NSW and Victoria continue to outperform most areas of the country,” he said.
“Population growth is higher, unemployment is lower and jobs growth stronger, providing a solid platform for housing demand.”
CoreLogic’s Tim Lawless says there could be another round of FOMO (fear of missing out) in the Sydney and Melbourne property markets.CREDIT:JANIE BARRETT
Mr Lawless said the two capital city markets were also being pushed up by investor activity.
The only other capital growing close to the speed of Sydney and Melbourne is in Canberra where house values lifted by 1 per cent in September. The nation’s capital is up by 1.9 per cent over the quarter and by 1.4 per cent so far this year.Brisbane house values increased by 0.2 per cent last month, to be 0.4 per cent up over the quarter. Elsewhere, values fell in Adelaide (by 0.1 per cent), Hobart (by 0.5 per cent), Darwin (by 0.6 per cent) and Perth (by 0.9 per cent).
Through the year so far, Darwin is the worst performed market with house values down by 9.8 per cent while in Perth they have tumbled by 6.7 per cent.
Mr Lawless said with auction clearance rates remaining above 70 per cent, prices were likely to continue climbing in Sydney and Melbourne.
But the number of properties on the market across all capital cities is 10 per cent lower than a year ago. Fresh listings are 15 per cent down.