Aussie property values surge 2% in November

CoreLogic’s dwelling price results have been released for November, which reveals a booming 2.0% increase in values over the month at the 5-city level, driven by surging values across Sydney (2.7%) and Melbourne (2.3%):

It was the fifth consecutive monthly acceleration in home values at the 5-city level:

Over the November quarter, dwelling values rose by 4.7% across the major capitals:

Values surged across Sydney and Melbourne, up 6.2% and 6.4% respectively over the quarter:

The next chart plots quarterly price growth by major capital, which illustrates the massive lift across Sydney and Melbourne, with Brisbane also rebounding:

In the year to November 2019, home values have risen by 0.4% at the 5-city level, driven by Sydney (+1.6%) and Melbourne (+2.2%), whereas Perth has crashed (-7.7%):

The next chart, which tracks trend annual price growth, also shows a strong rebound led by Sydney and Melbourne:

House prices are now booming, led by Sydney and Melbourne where auction clearance rates have bounced:

Whether the rebound can persist through 2020 is now the big question mark, especially in light of the low transaction volumes, soft mortgage volumes, weakening domestic economy, and weak wage growth.

Leith van Onselen

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