What’s Happening to Our Dwelling Prices?

Photo: eGuide Travel

Sceptical though I am about reading too much into short-term data, RP Data’s Daily Home Value Index is always entertaining and is showing some strong indications of property price rises.

It’s also worth noting that all property types within a city do not move in a harmonious manner as statistics at the macro level might seem to imply.

Melbourne

Melbourne is perhaps a prime example of a city with property markets with deviating prospects (high rise inner-city stock and remote fringe suburbs may fare less well than quality dwellings in landlocked middle suburbs, for example).

Dwelling prices in Melbourne are reported as being up by 6.87 per cent quarter-to-quarter, with I find remarkable, although the gains year-to-year are notably less dramatic at 5.70 per cent.

Sydney

As for Sydney, it’s equally remarkable to think that as recently as the first week of June commentators were talking about prices possibly being in a downtrend (they quite obviously weren’t) due to an instantaneous negative consumer response to the budget (?). 

Since June 9, Sydney’s dwelling prices are also reported as being up by more than 7 per cent, disproving the theory.

The numbers for the last quarter aren’t really backing me up here, but my gut feeling is that Sydney has stronger fundamentals than Melbourne at this point in time.

What About Everywhere Else?

There is talk of slowing jobs growth in Perth as the mining boom shifts away from construction and towards production. Prices remain up very strongly year on year, but gains seem to have slowed down.

There appear to be tentative signs of life in Brisbane and perhaps better days ahead for the sunshine state.

The only city where prices remain below where they were a year ago is Adelaide, although with interest rates looking to be locked at bargain basement levels for some time to come, moderate rises would surely be on the cards.

Only time will tell whether or not the city can recapture its 2010 peaks.