Sydney’s property market has marked a notable recovery, with CoreLogic’s Home Value Index rising by 0.8% in May.
This marks the 16th consecutive month of growth and the largest monthly gain since October last year.
The recovery brings Sydney’s dwelling values back to the record high set in January 2022.
“After recording a higher rate of gain through the early months of the growth cycle, conditions have faded across the upper quartile as borrowing capacity reduced and affordability constraints deflected demand towards middle-and-lower-priced properties,” said Tim Lawless (pictured above), CoreLogic’s research director.
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Brisbane has surpassed Canberra to become the second-most expensive capital city for dwellings, a position it hasn’t held since 1997.
Brisbane’s consistent capital gains have pushed its median house value to $937,479, slightly higher than Melbourne’s median.
“Brisbane values have increased at more than five times the pace of Melbourne values since the onset of COVID, with growth of 59.8% and 11.2%, respectively,” Lawless said.
The mid-sized capitals continue to lead the pace of growth, with Perth home values up 2.0% in May, Adelaide rising by 1.8%, and Brisbane increasing by 1.4%. In dollar terms, these increases translate to a rise of over $12,000 in median dwelling value month-to-month in each city.
Conversely, Hobart and Darwin recorded declines of -0.5% and -0.3% respectively.
“The number of properties available for sale in Perth and Adelaide remain more than -40% below the five-year average for this time of the year while Brisbane listings are -34% below average,” Lawless said.
Despite an increase in vendor activity, fresh listings are being rapidly absorbed by market demand, keeping stock levels low and putting upward pressure on prices.
“Inventory levels in these markets remain well below average despite vendor activity lifting relative to this time last year,” Lawless said.
Hobart, on the other hand, has seen listings rise 41% above the five-year average due to lower demand, with home sales down by -6.4% over the previous five-year average, CoreLogic reported.
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