Value growth is still all about Sydney & Melbourne
2015-10-13The CoreLogic RP Data Home Value Index results for September 2015 were released last week which showed another strong headline growth figure, however, digging below the surface reveals that Sydney and Melbourne are still the only capital cities to be recording exceptionally high rates of capital gain.
The CoreLogic RP Data Home Value Index is weighted based on the number of dwellings located within each capital city. As a result, larger housing markets such as Sydney and Melbourne have a much greater influence on the Index results than smaller ones like Darwin or Canberra.
Over the past year, the CoreLogic RP Data Home Value Index has recorded an 11.0% rise across the combined capitals index, however, dig a little deeper and you see that the vast majority of growth in dwelling values is emanating from Sydney and Melbourne. It is also important to realise that these two cities represent around 40% of the entire country’s housing stock, so outside of these markets home value growth is very different.
Rolling annual change in combined capital city home values
Annual change in individual capital city home values, 12 months to September 2015
Over the period from December 2008 to September 2015, combined capital city home values have increased by 48.8%. Only Sydney (76.5%) and Melbourne (68.8%) have recorded total growth in excess of the combined capital cities figure. In fact, the city with the third highest rate of growth over this period has been Darwin where values are 22.7% higher. The total rate of growth for Darwin is more than three times less than the total rate of growth for Melbourne.
Source:http://www.corelogic.com.au/news/value-growth-is-still-all-about-sydney-melbourne
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