There was a time in which having a dwelling worth $1 million or more meant that the property was exclusive and rare. Today dwellings with a $1 million valuation are becoming much more common. At the end of 2016, there were 760 suburbs nationally that had a median value of at least $1 million. This figure has increased from just 275 suburbs nationally five years earlier. Units have been the big mover with the number of $1 million suburbs increasing by 479% over the five years compared to a 160% increase for houses. Continue reading
Residex repeat sales index shows an acceleration in housing market performance across most capital cities over the second half of 2016. Residex recently released the results of their repeat sales index for the December quarter of 2016. The quarterly results showed house and unit prices, based on resold properties, increased across every capital city and housing type with the exception of Perth, where house and unit prices fell, and the Brisbane market, where unit prices were lower.
Table 1: Residex Repeat Sales Statistical Summary – December Data
In the year to November 2016, Australian dwelling values saw an increase of 4.49%. This is above the 3.77% annual growth average since 2009, when Australia felt the effects of the 2008 GFC. However, growth was below the November 2015 figure of 6.63%.
Table 1: Residex Repeat Sales Statistical Summary – November Data
Australian house and unit markets generally performed well over the October quarter, with the median house value increasing 3.05% over the quarter and unit growth of 1.06% in the same period, according to the Residex non-revised median valuation figures.
Growth was likely driven by a combination of low interest rates, relatively positive economic indicators and seasonal factors.
Table 1 displays the stats summary of Residex non-revised figures for the month ending 31st of October.
Table 1:Residex Non-Revised Stats Summary – October Data
Table 1 presents the Residex non-revised growth in median values. These figures suggest the Australian house market grew 1.63% in the September quarter. Growth was driven almost entirely by a strong surge of 1.63% in the month of September, off the back of a slight decline in August. Annual performance of Australian houses was 3.31%, as opposed to 7.2% in the previous year.
Similarly, the median non-revised unit value across Australia experienced 1.27% growth in the September quarter, with 1.17% growth in the month of September alone. Unit values across Australia increased 3.96%.
Table 1: September 2016 Median Value Index
The national housing market has recorded a slight decline in median house and unit values over August 2016 according to the Residex median value index. The falls in median values have been fairly broad-based across the country. The August figures are detailed in Table 1 below (note that Residex median values are non-revisionary and are published monthly. The methodology used to calculate median values is different to Residex’s quarterly repeat sales index).
Table 1: August 2016 Median Value Index
Overall capital growth in median value houses across Australia was 3.98% over the three months ending July, which was largely driven by strong growth in the metropolitan and regional markets in New South Wales, Victoria and the Australian Capital Territory. Hobart houses also performed well with an increase of 1.05% in the July quarter, however regional Tasmania suffered a sharp decline of 3.18%. Table 1 shows the latest Residex data to the month of July.
Table 1: July 2016 Summary
Overall, the Australian property market has generally performed well in the June quarter.
The Sydney, Melbourne and Brisbane markets saw strong gains over the June quarter, with the exception of Brisbane units – which were virtually unchanged. The resource markets in WA and NT continued their decline, however the pace of the declines has slowed. The June summary is presented in Table 1.
Table 1: June 2016 Summary
May proved a relatively positive quarter for Australia’s housing market. A snapshot of the May statistics is presented in Table 1.
Of the house markets, the Hobart market recorded the strongest quarterly growth gains in May with the median house increasing in value by 2.59%. This was followed by Country NSW houses, which posted 2.39% growth for the quarter.
In the unit market, the median Hobart unit increased by a shocking 6.66% in the May quarter. Regional Queensland was a very distant second, where median units increased by 2.44% over the same time period.
Table 1: May 2016 Summary
Headlines over the past few weeks have used words such as tightening, clamping and crunching when talking about the housing market and its affiliate institutions.
While a bearish approach to property is expected as we enter a downswing in the market cycle, further context and data are needed for a more grounded perspective.
Table 1 presents the statistics summary for April.