Source: CoreLogic
CoreLogic’s Home Value Index rose 0.8% in May, the 16th consecutive month of growth and the largest monthly gain since October last year.
The mid-sized capitals continued to lead the pace of growth, with Perth home values up 2.0% in May, Adelaide rising 1.8% and Brisbane up 1.4%. In dollar terms, it’s the equivalent of the median dwelling value rising by more than $12,000 month-to-month in each city.
CoreLogic research director, Tim Lawless, said extremely low levels of available supply across the strongest markets provide the best explanation for the difference in growth rates.
A changing of the guard: With Brisbane housing values consistently posting solid capital gains while ACT values remain relatively stable, we saw a changing of the guard in May. Brisbane overtook Canberra as having the second-highest median dwelling value across the capitals in May, a position Brisbane hasn’t recorded since 1997.
In January we also highlighted Brisbane dwelling values overtaking the Melbourne median. This was partly compositional, with the overall median dwelling value in Melbourne being weighed down by a high concentration of relatively cheap units. However, Brisbane house values are now also higher than the median house value across Melbourne, for the first time since June 2008. The median house value in Brisbane is currently $937,479, $190 above the Melbourne median. The median unit value in Brisbane, at $615,429, is also now higher than the median unit value in Melbourne, which is $614,299.
Coming into the pandemic Melbourne’s median dwelling value held around a 37% premium over Brisbane’s, and ACT’s median was approximately 24% higher. However, Brisbane values have increased at more than five times the pace of Melbourne values since the onset of COVID, with growth of 59.8% and 11.2% respectively. Brisbane has also substantially outpaced growth in the ACT where values are up 31.8% since March 2020.
Upper quartile home values have generally shown the lowest rate of growth over the past year. This trend is apparent across every capital city except Darwin, demonstrating stronger conditions across the more affordable price points of the market.
“After recording a higher rate of gain through the early months of the growth cycle, conditions have faded across the upper quartile as borrowing capacity reduced and affordability constraints deflected demand towards middle-and-lower-priced properties,” Mr Lawless said.
Across the combined capitals index, upper quartile dwelling values are up 6.7% over the past 12 months compared with a 13.4% gain across the lower quartile of the market.
| Change in dwelling values |
| | Month | Quarter | Annual | Total Return | Median Value |
| Sydney | 0.6% | 1.2% | 7.4% | 10.6% | $1,156,020 |
| Melbourne | 0.1% | -0.2% | 1.8% | 5.5% | $$780,437 |
| Brisbane | 1.4% | 3.9% | 16.3% | 21.0% | $843,231 |
| Canberra | 0.5% | 0.7% | 2.0% | 6.1% | $840,100 |
| Combined Regional | 0.6% | 2.0% | 6.8% | 11.6% | $626,888 |
The trend in housing values and activity continues to be insulated from the combined effect of high interest rates, cost of living pressures and deeply pessimistic consumer sentiment levels. “To say the housing market has been resilient is an understatement,” Mr Lawless said. “Housing values are continuing to rise across most areas and housing types, with growth accelerating in some markets,” Mr Lawless said. “The common denominator remains a mismatch between housing supply and housing demand.” Available housing supply, based on the number of homes advertised for sale over the past four weeks, remains well below average. Capital city listings are 16% below the previous five-year average and nearly -2% lower than a year ago. Demonstrated demand, based on the quarterly number of home sales, has tracked 7.2% above the previous five year average and are 2.8% higher than a year ago. “It’s this disconnect between supply and demand that is trumping the downside pressures from interest rates, high inflation and low sentiment. Despite worsening affordability pressures, from both a purchasing and a rental perspective, Australian residents still need to keep a roof over their heads,” Mr Lawless said.
Top 10 capital city SA3s with highest 12-month value growth - Dwellings
| Greater Brisbane | | |
| Springwood-Kingston | $708,695 | 24.2% |
| Forest Lake-Oxley | $725,301 | 22.0% |
| Loganlea-Carbrook | $751,862 | 21.8% |
| Carindale | $1,306,391 | 21.1% |
| Rocklea-Acacia Ridge | $977,223 | 21.1% |
| Sunnybank | $1,091,286 | 19.6% |
| Beenleigh | $661,115 | 19.4% |
| Chermside | $1,039,897 | 19.3% |
| Mt Gravatt | $1,133,598 | 19.1% |
| Browns Plains | $709,659 | 18.8% |
Top 10 regional SA3s with highest 12-month value growth - Dwellings
| Regional Qld | | |
| Granite Belt | $459,411 | 18.3% |
| Townsville | $463,153 | 17.9% |
| Buderim | $1,092,843 | 16.3% |
| Southport | $881,801 | 16.3% |
| Rockhampton | $494,109 | 16.0% |
