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Can you believe it! Two months down for 2017 - seriously, where does the time go?!?
Finally, we have access to some telling data when reviewing the month of February. We can start to paint a prudent picture of the Australian property market and what lies ahead for 2017. January generally suffers from a severe hangover, following the festive season. Stock on market is limited and buyers and sellers are generally dormant. However, luckily for those reading this, the month of February sees the restart button firmly pressed and we’re full steam ahead for 2017.
Surprising to some (but not us), Canberra leads the charge for February capital growth (all dwellings), followed closely by the ever resilient Sydney. Below is the leaderboard for growth in February (all dwellings) according to CoreLogic’s monthly Hedonic Home Value Index:
Canberra: 3.24%
Sydney: 2.58%
Melbourne: 1.46%
Hobart: 0.98%
Adelaide: 0.63%
Brisbane (inc. Gold Coast): -0.05%
Perth: -2.39%
Darwin: -4.29%
It just goes to show, Australian real estate is a collection of sub-markets. It’s a wide range of locations, price points and property types that move to the beat of their own drum.
CoreLogic head of research Tim Lawless said, “At a combined capital city level, growth conditions have been rebounding since the middle of last year when, on two separate occasions, interest rates were cut, and investor demand commenced trending higher.”
“Prior to capital gains accelerating halfway through last year, the growth trend had been moderating, reaching a cyclical low point over the twelve months ended July 2016 when the annual change in capital city dwelling values slowed to 6.1%.”
“The annual growth rate across the combined capitals hasn’t been this strong since the twelve months ending June 2010," he said.
We also understand that the February results now point to a new high point in the current growth cycle with a combined increase of 11.7% for all capital cities.
So where does that leave our capital city median dwelling prices? Well as of February 28, 2017, CoreLogic recorded the following:
Sydney: $795,000
Melbourne: $610,000
Canberra: $575,000
Darwin: $499,500
Brisbane: $485,000
Perth: $477,000
Adelaide: $435,000
Hobart: $374,000
Lastly, and most alluring for Western Australia, this January, the mining industry enjoyed the greatest advertising growth with job ads on SEEK, up 45% year on year. This presents positive signs that the mining industry is on the rebound, leading to stronger economic growth and employment. The REIWA notes positive numbers from the recent September and December quarters. We are witnessing more and more data pointing to Perth approaching the Bottom of the cycle (if not already). We will continue to monitor the data - but all signs point to better times ahead for our friends the West.
Milk Chocolate purchase residential and commercial property in Australia on behalf of Australians living abroad, looking for a home or investment property. To see how we can help you get in touch here.
Cheers
Richie
* Data sourced from / HerronToddWhite / CoreLogic
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