Uneven results for capital housing values

Uneven results for capital housing valuesThe latest RP Data CoreLogic Home Value Index results show housing values across Australia’s capital cities remained flat over the month of September, with a 0.1 per cent capital gain recorded.Sydney helped skew the result, recording a +0.8 per cent increase in dwelling values during September, with Brisbane (+0.7 per cent) and Adelaide (+0.9 per cent) also recording gains. They masked the fact that five of Australia’s capital cities recorded a fall in values over the month. Melbourne recorded the biggest fall with a -0.8 per cent drop in dwelling values over the period.Sydney was also the best-performing capital city in the three months to September, recording a capital gain rate of +4.1 per cent. Melbourne displayed a better result over the quarter, recording a figure of +3.7 per cent. The combined capitals recorded a +2.9 per cent capital gain over the September quarter, largely on the back of strong performance by the country’s two largest cities. Perth (-0.6 per cent) and Hobart (-1.0 per cent) were the only two capital city markets to record a decline in dwelling values over the quarter.It was a similar story over the year, with Sydney leading the way for the other capital cities. Dwelling values in Sydney increased by +14.3 per cent over the past 12 months, with Melbourne the next-best performer at +8.1 per cent. Every capital city recorded an increase over the period, with Hobart (+4.6 per cent), Perth (+3.2 per cent) and Canberra (+1.7 per cent) recording the lowest rates of annual capital gain. The capital cities combined recorded a +9.3 per cent increase in the 12 months to September 2014.The RP Data report shows that indicators remain strong, despite the easing of capital gains in September. Auction clearance rates are above the 70-per-cent mark, week to week, and volumes across RP Data real estate agent and valuation platforms stayed strong, indicating heightened levels of industry and mortgage market activity.To view the latest Home Value Index results, go to: http://www.rpdata.com/research/capital_gains_slow_over_september.html