Looking at the change in home values over the first quarter of 2016, Brisbane and Perth were the only capital cities to record value falls, down 0.1% and 0.9% respectively. Over the past year, home values across the combined capital cities increased 6.4%, which is the slowest annual rate of value growth since September 2013. The annual rate of value growth is well below the most recent peak of 11.1% recorded over the 12 months to July 2015.
Across the individual capital cities, for the first time since September 2013, no capital cities recorded annual dwelling value growth of more than 10%. Sydney and Melbourne are still recording stronger annual growth than all other capital cities. Sydney home value increased 7.4% over the past year, which is the city’s slowest rate of value growth since August 2013. Melbourne home values increased 9.8% over the past year, which is the slowest value growth for the city since May 2015.
Across the remaining capital cities, the annual changes in home values were recorded at:
Houses continued to record greater value increases than units over the past year, with annual increases across the combined capital cities of 6.6% and 4.7% respectively. Hobart is the only capital city in which units increased in value more than houses over the past year. Melbourne has seen the largest divergence in growth of house values compared with units, with only a 2.5% increase in unit values.
Rents fell 0.2% over the 12 months to March 2016. This is the weakest rental market since 1996 with gross rental yields sitting at historic lows of 3.5%.
New residential property listing lower for all capitals
New residential property listings across the capital cities are slightly lower than they were at the same time last year. Compared to the same time last year, new capital city listings are 0.2% lower.
The auction market has begun the year very strongly, particularly compared with the weakness in auction markets late in 2015. After combined capital city auction clearance rates fell to as low as 57.3% late last year, they have been recorded at an average of 68.5% this year.
Although clearance rates are higher, auction volumes are lower than a year ago.
The CoreLogic Mortgage Index, which tracks mortgage indicates activity is trending lower, currently 15.7% lower than at the same time last year. This indicates that demand for mortgages is currently much lower than it was a year ago.