Price growth slowing, but upwards momentum remains: RP Data

Dwelling values across Australia’s capital cities increased by 1% over the month of October, according to the latest RP Data CoreLogic home value Index.

Despite a slowdown in growth, also seen in September, prices continue to rise – up 2.2% over the past three months.

Only Sydney, Melbourne and Brisbane recorded rises over October - at 1.3%, 1.9% and 0.6% respectively. Despite the headline 2.2% quarterly figure, only half of the capital cities noted increases.

RP Data’s Tim Lawless explained that Sydney is still a stand out, with values up 1% in October and 3.9% over the past three months. Sydney and Melbourne’s results continue to drive the national figure, Lawless said.

Meanwhile, Perth and Canberra have now passed the peak of their growth. Hobart and Canberra posted the strongest falls, down 2.8% and 2.4% respectively.

“Looking at the increase in home values over the 12 months to October, it is clear that the rate of capital growth is continuing to moderate,” said Lawless.

“Despite the annual rate of value growth slowing, all capital cities have still recorded an increase in home values over the past year. Home values across the combined capital cities have increased by 8.9% over the 12 months ending October 2014, which has slowed from a peak of 11.5% in April of this year,” he said.

Over the year, Sydney’s home values are up 13.1%, with Melbourne up 8.9%. Brisbane, the third best performer, is up 5.6%, while Darwin is also up 5%. Subdued growth was seen in Hobart, at 4.4%, with Adelaide posting a 4.3% uptick, Perth up 3.4% and Canberra relatively stable at 0.9%.

“Despite the fact that the annual increase in home values is slowing, other indicators remain strong,” he said.

Source: RP Data CoreLogic home value Index