CoreLogic has released a report examining Australian dwelling value growth over the past 30 years.
Nationally, dwelling values have increased 382% over the past 30 years across six distinct growth phases. That’s an average 5.4% annual compound rise since July 1992:
Endless march upwards.
As expected, house values have typically risen substantially more than unit values over the past 30 years, “which is likely a reflection of the scarcity value of land driving a faster rate of appreciation”.
Across the combined capital cities, house values rose 453% over the past 30 years, well above the 307% lift across the unit sector:
Houses dominate unit price growth.
The combined capital cities have also risen 453% over the past 30 years, well above the 307% growth across the combined regions.
The migrant epicentres of Melbourne and Sydney have experienced the strongest house price growth over the 30-year period, up 519% and 507% respectively. Both growth rates were well above the 453% growth recorded across the combined capitals:
Melbourne and Sydney experience nation’s strongest house price growth.
The 30-year house price growth rates were significantly lower across the other capital cities, namely:
- Brisbane: 390%
- Adelaide: 370%
- Perth: 325%
- Hobart: 423%
- Darwin: 98%
- ACT: 431%
These results make sense, given Melbourne and Sydney have received the lion’s share of Australia’s immigration over the past 30 years, thereby placing upward pressure on housing demand and prices.
This long-term trend will likely continue if the Albanese Government turbo-charges immigration in the wake of this week’s Jobs & Skills Summit.
