Sydney and Melbourne lead slowing Aussie property market

Price growth across Australia’s two biggest and most expensive property markets is slowing much more quickly than its smaller capital city peers, according to CoreLogic’s daily dwelling values index:

Quarterly dwelling value growth

Sydney and Melbourne price growth slowing fast.

As shown above:

  • Sydney’s quarterly price growth peaked at 9.6% in mid-May but has slowed to 6.9% as at 25 August.
  • Melbourne’s quarterly price growth peaked at 6.3% in mid-May but has slowed to 4.1% as at 25 August.
  • Brisbane’s quarterly price growth peaked at 6.6% in late-May and has only slowed marginally to 6.1% as at 25 August.
  • Adelaide’s quarterly price growth peaked at 5.8% in early-July and has only slowed marginally to 5.3% as at 25 August.
  • Perth’s dwelling value index has been temporarily suspended while CoreLogic investigates and resolves an anomaly between its hedonic index and other housing market measurements in Western Australia.

Clearly, the relative affordability of Brisbane and Adelaide, combined with them avoiding lockdowns, is contributing to their more stable price growth.

I also expect Brisbane’s property market to outperform over the longer-term as its attractive affordability and lifestyle pulls in increasing numbers of residents from Sydney and Melbourne.

Unconventional Economist
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Comments

  1. I love how they’ve dropped Perth. It’s probably due to the work experience kid who stuffed up the data points and pivot chart and they’re waiting until Chris Joye responds to the pager and help rectify the trend line.

    • Lord DudleyMEMBER

      Yup! Keep that growth up for 10 years, and that’s 14.4x growth. Which when applied to the Sydney median of $1.3 million dollars, is $18.9 million dollars in 2031. A 5 percent deposit would be $944k.

      Start saving kiddos, because if things keep going the way they are, you’ll need a cool million as a house deposit in 10 years time.

      This of course makes zero sense.

  2. I also expect Brisbane’s property market to outperform over the longer-term as its attractive affordability and lifestyle pulls in increasing numbers of residents from Sydney and Melbourne.

    I’d also add the current state gov infrastructure spend and the impending Olympics will help boost prices. Expect Brisbane to be Sydney 2.0 in 10-15 yrs time.