Dwelling values have increased across all but two capital cities over the last 12 months, new research has revealed.
According to the latest CoreLogic RP Data April Home Value Index, Melbourne was the best performing capital city over the 12 months to 30 April 2016, with dwelling values increasing by 10.1 per cent.
This was followed by Sydney with an increase in dwelling values of 8.9 per cent, Brisbane with 6.2 per cent, Canberra with 4.5 per cent, Adelaide with 3.6 per cent and Hobart with 1.1 per cent.
The only capital cities to record a decline in dwelling values over the period was Darwin and Perth, with a drop of 3.7 per cent and 2.1 per cent respectively.
The latest figures take the combined capital city dwelling values 7.3 per cent higher over the 12-month period.
“The results show value growth moved at a faster pace compared with the final three months of 2015 when capital city dwelling values slid 1.4 per cent lower off the back of weaker market conditions in Sydney and Melbourne,” CoreLogic RP Data research director Tim Lawless said.
“While we’ve seen capital gains moderate substantially after peaking last year in Sydney and Melbourne, dwelling values continue to trend higher, just not as fast.
“The annual rate of growth in Sydney peaked at 18.4 per cent in July last year and has since moderated back to slightly less than half the peak rate of growth, at 8.9 per cent over the most recent 12-month period.”
Mr Lawless said Australia’s regional markets also experienced a lift in dwelling values over the year to date.
“While house values across the non-capital city markets have generally underperformed compared with the capital city regions, regional house values moved 2.4 per cent higher over the first quarter of the year,” he said.
“[However] the regional results are far from uniform across the states, with houses across both regional Western Australia and South Australia clearly showing values have moved lower over the past 12 months, down 1.2 per cent and 6.1 per cent respectively.”
Mr Lawless noted New South Wales was the regional market which received the highest value gains, with dwelling values increasing by 6.5 per cent over the 12-month period.
“Mining and resource-related areas continue to be a drag on regional housing market averages, however regional coastal and lifestyle markets, as well as major regional service centres which are sheltered from the mining downturn, are recording much healthier housing market conditions,” he said.