Melbourne detached housing values climb 12.3%: CoreLogic RP Data

Detached housing values in Melbourne have increased 12.3% higher over the year, eclipsing the 4.8% rise in unit values.

CoreLogic RP Data’s head of research Tim Lawless said the difference in value increases between houses and units could be related to supply.

"The underlying land component driving detached housing values higher at a time when new apartment supply has seen a substantial boost from new construction,” Mr Lawless said. 

According to the CoreLogic RP Data July Home Value Indices 2015 report, Melbourne's capital rate gain surpassed Sydney over the last three months posting 6.1% to the three months ending July 31. Capital gain in Sydney for the quarter ams in at 5.4%.

Mr Lawless said growth in Sydney wasn’t quite as strong over the rolling quarter, which is the highest rate of growth since the March quarter this year (5.8%). 

“To date, the capital cities have seen remarkable differences over the growth cycle which broadly commenced at the end of May 2012 and since that time dwelling values across our combined capitals index have increased by 30.4%," Mr Lawless said.

"Sydney values are 47.9% higher over the current cycle and Melbourne values are 32.1% higher while every other capital city has seen growth of less than 13% over the same period. This highlights the extent to which the Sydney and Melbourne markets have outperformed other markets over the past three years. 

“While Sydney and Melbourne values continue to boom, the next best performing city, Brisbane, has seen dwelling values rise by just 3.9% over the past twelve months. Based on the median dwelling price, Sydney prices are now 72% higher than Brisbane’s and Melbourne’s are 24% higher,” he said.