01 May Monthly Property Snapshot
Property snapshot is taken form the latest CoreLogic Hedonic Home Value Index.
Perth’s market values held in April making no change to March’s slight gain, giving the last quarter a decrease of 0.2% and an overall decrease annually of 2.4%.
Nationally dwelling values in the capital cities (combined) recorded their first annual decline since November 2012. Sydney and Melbourne dropping 0.4%. Hobart again had the greatest increase (1.2%) followed by Darwin and Canberra gaining 0.3%.
Capital Cities are now being outpaced by regional areas. According to Tim Lawless (Head of Research, CoreLogic) the market is seeing a reversal of longer term trends “At a macro level, the latest trends are virtually the opposite of what we have become used to over the past five or so years. Regional areas are now outperforming the capitals and units are outperforming houses. Also the most expensive
properties are now showing weaker conditions than the more affordable ones.”
Units or houses? The report also highlights that units are outperforming house values. The last five years showed strong growth with detached houses recording growth annually of 7.3% against a growth of 5.5% for units. Tim Lawless said “Despite the surge in unit construction over recent years, the past twelve months has seen unit values continue to trend higher, up 1.9%, compared with a 1.0% fall in house values.”
Source: CoreLogic Hedonic Home Value Index, April 2018 Results. Click here to download the full report: CoreLogic Australia Dwelling Values April
Rental rates nationally have eased to an annual increase of 2.0% in comparison to 7 months ago when it was 2.9%.
In Perth rental yields remain at 3.8% for houses and 4.4% for units. Nationally Darwin and has the biggest return at 6.4% for units.