The latest Property Pulse by CoreLogic takes a look at how the property markets have fared post-global financial crisis, and shows while on the whole dwelling values are up, individually only the two most popular property markets have prospered.
It is no surprise to anyone that the global financial crisis impacted many economies worldwide, including Australia and its housing market.
The latest Property Pulse shows Sydney has recorded the most in dwelling value growth over the last 10 years, recording 79.3 per cent growth, followed by Melbourne at 72.4 per cent growth. Likewise, regional NSW and Victoria also recorded high levels of dwelling value growth, with regional Victoria leading at 42.7 per cent, followed by regional NSW with 36.3 per cent growth.
In terms of capital cities, following the powerhouses was Hobart at 29.5 per cent growth, Canberra at 23.8 per cent growth, Adelaide at 19.1 per cent growth, Brisbane at 10.3 per cent growth and Darwin at 5.4 per cent growth.
The regional markets saw smaller capital growth rises, with regional Northern Territory following NSW and Victoria at 31.8 per cent, then regional Tasmania at 16.3 per cent and regional South Australia at 4 per cent.
Dwelling value declines were recorded inat 6.9 per cent, regional Queensland at 5.1 per cent and regional Western Australia at 29.5 per cent.
Looking back at when the GFC hit, CoreLogic analyst Cameron Kusher said values most notably fell in 2008 and begun to rise in 2009.
“The declines were fairly short and sharp. The declining housing market was reversed due to two main factors: a swift reduction in mortgage rates and the introduction of government stimulus including additional first home buyer incentives which helped stimulate growth in demand and subsequently values,” Mr Kusher said.
“During the GFC downturn, all regions of the country recorded declines with national values falling by 7.9 per cent between February 2008 and January 2009.”
The next significant decline was then seen again between 2010 and 2012, with slightly different timings for each individual market, with values falling by 6.5 per cent.
In recent times, Mr Kusher said that softer housing market conditions are prevalent.
Softer housing market conditions have become evident with a number of regions starting to see values decline at 0.7 per cent below their peak, with the combined capital cities to blame at below 1 per cent of their peak.
“With dwelling values now falling in a number of regions, it will be interesting to see how rapidly values, fall, what may or may not be done to slow the falls, and how the market declines will compare to other periods of decline over the past decade,” Mr Kusher said.