CoreLogic has updated its 5-city daily dwelling values index for 31 March, which shows that dwelling values nationally rose by 0.33% – up marginally on the 0.30% growth recorded in February:
There was significant divergence between the capitals, however, with both Sydney and Melbourne recording value declines of 0.2% and 0.1% respectively over March, whereas Brisbane (2.2%), Adelaide (1.9%) and Perth (1.0%) each recorded strong growth:
As shown in the next chart, Sydney has recorded two consecutive months of dwelling value declines – a sharp turnaround from the extraordinary 3.7% growth recorded a year prior in March 2021:
Melbourne’s monthly dwelling value growth has also trended sharply lower and is now in ‘correction’ territory:
In fact over the first quarter of 2022, Sydney’s (0.3%) and Melbourne’s (0.2%) dwelling values have barely grown, whereas Brisbane’s (6.6%) and Adelaide’s (5.8%) have gone gangbusters:
The next chart, which plots the quarterly time series, shows the divergence in dwelling value growth more clearly:
Given Sydney and Melbourne are Australia’s most expensive major capitals, they should be most sensitive to rising interest rates. Therefore, they are also more susceptible to a sharper house price correction. The below video contains more analysis.
