Where YOU need to buy now as the downturn ends: Sydney and Melbourne suburbs are now Australia’s BEST performing housing markets
- Melbourne’s inner-east has gone from being the worst to best housing market
- Property prices have risen by 3.1 per cent during the past year, after fall in 2018
- Sydney’s Baulkham Hills, Hawkesbury area is now among the best six nationally
Suburbs in Sydney and Melbourne hit by the property slump are now the best performing real estate markets in Australia.
Since peaking in 2017, house prices in Australia’s biggest cities have been through a record downturn.
Circumstances have changed dramatically in a year, with Melbourne’s inner-east going from being Australia’s worst to best metropolitan housing market.
Suburbs in Sydney and Melbourne are now the best performing real estate markets in Australia. Circumstances have changed dramatically in a year, with Melbourne’s inner-east going from being Australia’s worst to best metropolitan housing market (pictured is a house up for auction at Hawthorn East)
SYDNEY: Houses up 1.8 per cent to $918,314
MELBOURNE: Houses up 2.4 per cent to $751,513
BRISBANE: Houses up 0.9 per cent to $539,167
ADELAIDE: Houses up 0.5 per cent to $468,757
PERTH: Houses down 0.4 per cent to $451,815
HOBART: Houses up 0.9 per cent to $492,465
DARWIN: Houses up 0.7 per cent to $468,317
CANBERRA: Houses up 0.8 per cent to $671,968
* Except in Perth
Source: CoreLogic Home Value Index, October 2019 based on median house prices
Median real estate values in these wealthy suburbs have risen by 3.1 per cent during the past year, CoreLogic property price data for October showed.
In 2018, property prices in these suburbs fell by 13.4 per cent.
Sydney is also bouncing back, with median house prices at Baulkham Hills and the Hawkesbury, in the city’s outer north-west, edging up by 1.1 per cent during the past year to be Australia’s sixth best performing capital city area.
The city isn’t completely in the clear, however, with median property prices in Sydney’s inner south-west falling by an annual pace of 5.6 per cent, making it Australia’s 10th worst metropolitan market.
Nonetheless, median house prices across Sydney rose by 1.8 per cent in October to $918,314, marking the fifth consecutive month of increase.
This has partially reversed Sydney’s record 17.4 per cent fall – from the peak in July 2017 to the trough in mid-2019 – following the Australian Prudential Regulation Authority’s crackdown on investor and interest-only loans.
Sydney is also bouncing back, with house prices at Baulkham Hills and the Hawkesbury, in the city’s outer north-west, edging up by 1.1 per cent to be Australia’s sixth best performing capital city area
Australia’s most wanted
1. Melbourne inner-east: up 3.1 per cent
2. Melbourne inner: up 2.8 per cent
3. Hobart: up 2.6 per cent
4. Canberra: up two per cent
5. Adelaide north: 1.7 per cent
6. Sydney’s north-west (Baulkham Hills and Hawkesbury): up 1.1 per cent
7. Adelaide south: up 0.1 per cent
Source: CoreLogic analysis of annual increases for capital city markets in October 2019. Areas are based on Australian Bureau of Statistics boundaries
Melbourne’s equivalent values rose by 2.4 per cent last month to $751,513, continuing a comeback that began in June.
CoreLogic research director Tim Lawless said record low interest rates, population growth and a tighter labour market were driving the rebound in Sydney and Melbourne.
‘It’s becoming increasingly clear that the housing market rebound is gathering pace,’ he said.
‘Demand for housing is responding to stimulus measures, including mortgage rates that are now lower than anything we have seen since the 1950s.’
Perth now has the dubious distinction of being Australia’s worst performing capital city housing market, with five of its suburban areas in the bottom 10 list, including inner Perth where prices have dived by 10.7 per cent during the past year.
Median house prices across Sydney rose by 1.8 per cent in October to $918,314, marking the fifth consecutive month of increase
That swells to six if the satellite city of Mandurah, south of the West Australia capital, is included.
Perth was the only capital city market where median house prices fell in October – with values declining by 0.4 per cent.
Meanwhile, house prices rose in Brisbane (0.9 per cent), Adelaide (0.5 per cent), Hobart (0.9 per cent) Darwin (0.7 per cent) and Canberra (0.8 per cent).
The Reserve Bank of Australia in October cut interest rates to a record low of 0.75 per cent, which followed monetary policy easings in June and July.
APRA, the banking regulator, has this year also scrapped a requirement for lenders to model a borrower’s ability to repay a 7.25 per cent standard variable mortgage rate, as home loan rates fall close to three per cent.