Employment to drive growth in two cities
The effect of an often overlooked house price growth driver has been uncovered by a new report – with two city markets set to benefit the most from recent employment trends.
Sydney and Melbourne have benefited the most from employment increases since 2008, but housing markets in Hobart and Brisbane should pick up on the positive effects of a newly expanded workforce.
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That’s the finding of an analysis by CoreLogic RP Data, which found that recent full-time job figures for Brisbane and Hobart compare favourably with other cities.
“Over the past year, 24,713 full-time jobs have been created in Brisbane compared to 26,036 since 2008. Similarly, in Hobart there have been 3,331 full-time jobs created over the past year compared to full-time job losses of -4,347 since 2008.
“The recent relative strength in job creation in Brisbane and Hobart may signal increasing housing demand in those cities over the coming year,” the company said this week.
The property data company studied the capital price growth performances of each of Australia’s capital cities from December 2008 to September 2015 and found that full-time employment rates strongly correlated with capital growth.
During 2008, combined capital city home values fell by -6.1 per cent from March to December, according to the company.
House prices then started on a path to recovery – although the extent of this varied significantly from city to city.
“While values increased, Sydney and Melbourne have consistently recorded the strongest value growth, while for brief periods Perth, Canberra and Darwin have also seen quite strong levels of value growth,” the company stated.
That trend has continued throughout the past year, with Australia’s two biggest cities proving to be the only consistent performers.
“Over the 12 months to September 2015, Sydney and Melbourne have continued to create the greatest proportion of jobs. There has also been somewhat of a reversal of fortunes for the remaining regions. Full-time employment growth has more recently ramped up in Brisbane and Hobart, while Adelaide has continued to shed full-time jobs while there were also fewer full-time jobs available in Perth and the ACT.”
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