Capital city dwelling values record their first annual decline since 2012
National dwelling values dropped 0.1% in April, the seventh consecutive month-on-month fall since values started falling in October last year, according to the CoreLogic April home value index results.
CoreLogic head of research Tim Lawless found that the declines were concentrated within the largest capitals, while regional dwelling values edged 0.4% higher.
Capital city dwelling values were 0.3% lower over the month, driven by larger falls of -0.4% in Sydney and Melbourne and a smaller decline in Brisbane values (-0.1%).
The falls were offset by flat conditions in Perth and subtle rises in Adelaide (+0.1%), Darwin and Canberra (both +0.6%). Hobart was the only city where dwelling values rose by more than 1% in April.
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On an annual basis, the combined capitals recorded the first decline in dwelling values since late 2012, with values slipping 0.3% lower.
They were driven by falls in Sydney (-3.4%), Perth (-2.3%) and Darwin (-7.7%).
Hobart dwelling prices were the only to soar in double digit growth, while most pockets of Melbourne secured strong price growth.
Unsurprisingly, dwelling values across a number of sub regions in Sydney saw values, some areas up to nearly seven percent.
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Regional areas are outperforming capitals, after a five year period where capitals have been the dominant areas.
“At a macro level, the latest trends are virtually the opposite of what we have become used to over the past five or so years," Tim Lawless said.
"Regional areas are now outperforming the capitals and units are outperforming houses. Also the most expensive properties are now showing weaker conditions than the more affordable ones.”
The past five years has seen combined capital city dwelling values appreciate at the annual rate of 6.8% which is almost double the annual rate across the combined regional markets at 3.5%. The past twelve months has seen capital city dwelling values fall by 0.3% while regional values are 2.4% higher.
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