Australia’s pandemic property boom continues its upwards trajectory, with the latest figures revealing housing values rose in November for the 14th month in a row.
Property values have climbed more than 20 per cent over the year nationally, adding approximately $126,700 to the median value of an Australian home.
But the market is losing steam. Although housing values continued to rise in November – nationally, they’re up by 1.3 per cent – the November result was the softest outcome since January, CoreLogic’s latest national home value index revealed.
Across Sydney and Melbourne, conditions have slowed sharply with the sudden rise in new listings and affordability pressures taking their toll.
Sydney housing values rose 0.9 per cent over the month, while Melbourne by 0.6 per cent – a far cry from the massive rises in March this year when prices soared by 3.7 per cent in Sydney and 2.4 per cent in Melbourne.
The fastest-growing property markets in Australia are now in Brisbane and Adelaide, where housing values are rising rapidly. They are the only capital cities yet to experience a slowdown.
Brisbane’s home values hit a cyclical high, rising by 2.9 per cent in November. That’s the fastest rate of growth for the river city in 18 years, adding $18,500 to the cost of a property in just one month.
Adelaide values rose 2.5 per cent, which equates to a rise of $13,500 – the highest rise since February 1993.
Different supply dynamics are also creating divergent trends across Australian capital cities. In the four weeks to November 28, the total stock available for sale across Adelaide was 32 per cent lower than the five-year average, and 33.9 per cent lower across Brisbane.
Across Sydney and Melbourne however, stock levels have become far more normalised in recent weeks, with Sydney total listings sitting just 2.6 per cent below the five-year average, while stock levels across Melbourne are 7.9 per cent above the five-year average.
Mr Lawless said he expected new listings would continue to rise into the new year, which would be a key factor driving the slowdown in capital growth.
Houses have continued to outperform units, with capital city values up 1.2 per cent and 0.7 per cent respectively over the month.
Based on median values, capital city houses are now 37.9 per cent more expensive than capital city units – the largest difference on record. In dollar value terms, a capital city house is averaging approximately $240,500 more than a capital city unit. In Sydney, where the gap between house and unit values is the widest, a house costs $523,000 more on average than a unit.