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Home Prices Make Gains Across All Australian Capitals: CoreLogic Figures

Home prices rose 2.2 percent across the nation in May with gains of more than one percent recorded in all capital cities.

SYDNEY — House prices continued to surge across the nation in May, with values up by more than one percent in every capital city.

The CoreLogic home value index rose 2.2 percent in May, just shy of the 2.8 percent pace recorded in March — a 32-year-high.

Hobart saw the biggest increase, with values growing by 3.2 percent as an average home is now worth AU$574,543 ($444,521).

Sydney came in a close second with a 3 percent surge taking the median house value in the city to AU$970,355 ($750,923).

A general view of residential properties in Melbourne. (James Ross/AAP Image)

As per CoreLogic figures, the average house in Harbor City is now going for AU$1.1 million ($851,449) with units at AU$800,000 ($619,092).

Nationally, the 2.2 percent surge means the median value of homes across Australia has now hit AU$634,355 ($490,905) — with predictions it will continue to rise this year and into 2022.

CoreLogic’s research director Tim Lawless claimed that the growth conditions remained broad-based both geographically and across housing types.

Lawless added that things had changed in the past year, with the most affordable end of the market no longer driving price increases and instead has been taken over by the most expensive part of the market across most capital cities.

ABS data showed while approvals for private detached houses remained strong, the more volatile “approvals excluding houses” component tumbled 28.6 per cent. (Lukas Coch/AAP Image)

“Such a synchronized upswing is an absolute rarity across Australia’s diverse array of housing markets,” he said.

Across the capital cities, the monthly change in dwelling values ranged from a 1.1 percent rise in Perth to a 3.2 percent jump in Hobart.

Across the non-capital city regions, conditions were more diverse, with regional New South Wales leading monthly gains, up 2.5 percent, while values in regional Western Australia had the weakest result, down 0.1 percent.

Lawless claims that the combination of improving economic conditions and low interest rates is continuing to support consumer confidence, which in turn has created a persistently strong demand for housing.

“At the same time, advertised supply remains well below average,” he said.

“This imbalance between demand and supply is continuing to create urgency amongst buyers, contributing to the upwards pressure on housing prices.”

Corelogic National Home Value Index for May (month, annual) includes:

National — up 2.2 percent, up 10.6 percent,

Sydney — up 3.0 percent, up 11.2 percent,

Melbourne — up 1.8 percent, up 5.0 percent,

Brisbane — up 2.0 percent, up 10.6 percent,

Adelaide — up 1.9 percent, up 11.8 percent.

Perth — up 1.1 percent, up 8.5 percent

Hobart — up 3.2 percent, up 16.5 percent

Darwin — up 2.7 percent, up 20.3 percent

Canberra — up 1.7 percent, up 15.6 percent

Combined capitals — up 2.3 percent, up 9.4 percent

Combined regional — up 2.0 percent, up 15.2 percent

(Edited by Vaibhav Vishwanath Pawar and Pallavi Mehra)