For the first time in two years, Sydney residential property prices have posted a monthly increase, with Melbourne also entering positive territory, latest figures show.
Property prices in Australia’s largest city edged up by 0.1 of a percentage point in June, according to data firm CoreLogic, noting this was “the first monthly increase in Sydney housing values since the market peak in July 2017”.
Similarly, Melbourne posted its first monthly increase in values since its peak in November 2017, rising by 0.2 of a percentage point.
The results in these two cities helped ease the national rate of price declines to 0.2 of a percentage point for the month.
“The subtle rate of decline was heavily influenced by trends across Sydney and Melbourne, where the pace of falling home values has been consistently reducing over the year to date,” CoreLogic’s head of research, Tim Lawless, said.
“Importantly, the improving conditions through to mid-May were largely ‘organic’, pre-dating the positive boost in sentiment following the federal election and interest rate cuts in early June.”
Hobart was the only other capital city to see values rise in June, up by 0.2 of a percentage point. Regional areas of South Australia and the Northern Territory also increased (0.1 of a percentage point and 0.2 of a percentage point, respectively).
All other areas and cities saw prices fall, led by Darwin (down by 3.6 per cent) and Perth (easing by 2.1 per cent).
Separately, CoreLogic’s auction market review showed national auction clearance rates trending above 60 per cent for the third consecutive week last week.
“The higher auction results align with the trend in housing values, where the rate of decline has been consistently improving through 2019, largely driven by improved conditions across Sydney and Melbourne,” it said.
“If we see auction clearance rates holding above the 60 per cent mark consistently, it’s a firm sign that buyer and seller price expectations are more balanced and housing prices are finding a new floor.”
Both sets of figures were released just a day before the Reserve Bank board is due to meet again to decide whether to cut interest rates again in July.
There have been suggestions that June’s cut may be the first of three consecutive interest rate reductions.
Property prices over last 12 months (and over last five years)
- Sydney: Down by 9.9 per cent (up by 18.8 per cent)
- Regional NSW: Down by 4.9 per cent (up by 22.7 per cent)
- Melbourne: Down by 9.2 per cent (up by 23.7 per cent)
- Regional Victoria: Down by 0.3 of a percentage point (up by 21.1 per cent)
- Brisbane: Down by 2.6 per cent (up by 7.1 per cent)
- Regional Queensland: Down by 1.9 per cent (up by 4.4 per cent)
- Adelaide: Down by 0.3 of a percentage point (up by 10.9 per cent)
- Regional SA: Up by 0.2 of a percentage point (down by 0.1 of percentage point)
- Perth: Down by 9.1 per cent (down by 19.8 per cent)
- Regional WA: Down by 10.3 per cent (down by 27.7 per cent)
- Hobart: Up by 2.9 per cent (up by 34.4 per cent)
- Regional Tasmania: Up by 5.6 per cent (up by 23.3 per cent)
- Darwin: Down by 9.3 per cent (down by 29.4 per cent)
- Regional NT: Up by 0.6 of a percentage point (down by 6.2 per cent)
- Canberra: Up by 1.4 per cent (up by 22.7 per cent)
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.