The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
EARLY BIRD ENDING THIS THURSDAY START YOUR NOMINATIONS TODAY
EARLY BIRD ENDING THIS THURSDAY URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
105
print
Print
ResidentialTim LawlessThu 07 Nov 19

How Long Until Housing Values Reach a New Record High?

29f743d4-fef4-4782-850f-ca4ebe3fdb2f

If housing values continue to rise at the same rate recorded over the past three months, national dwelling values could reach a new record high in six months time.

Based on Corelogic’s home value index, national dwelling values remained 5.7 per cent below their peak at the end of October.

With values rising by 2.9 per cent over the past three months (averaging a rise of just under 1 per cent per month), it would take approximately 6 months for housing values to return to their historic high.

Most of Australia’s capital cities have recorded a rise in dwelling values over the past three months, with the only exceptions being Perth and Darwin, where values have been trending lower since mid-2014.

While values continue to reduce, housing affordability is continuing to improve and buying opportunities are becoming more plentiful.

The same can’t be said of Hobart and Canberra which are the two capitals where housing values are already at new record highs.

Hobart values recorded only a mild correction of 1.3 per cent from peak to trough, with the market reaching a new record high in October 2019.

Similarly, Canberra housing values recorded a peak-to-trough decline of only 1.5 per cent during the downturn, and moved through a new record high in September this year.

Across the remaining capital cities, Melbourne is on track to stage a full recovery the earliest. If the current run rate of growth continues, Melbourne’s housing market will recover in January. During the correction,

Melbourne housing values fell by 11.1 per cent from peak to trough and remained 5.8 per cent below their peak in October.

Dwelling values across Melbourne’s inner precinct were only 1.5 per cent below their peak in October, and this sub-region is on track set a new valuation benchmark by the end of November; the earliest of any of Melbourne’s sub-regions.

Related: House Prices Make Biggest Jump in 4 Years

Months to recovery3 months to OctoberFrom market peak to OctoberDate of peak
Australia6 2.9%-5.7%October 2017
Sydney66.6%-10.4%July 2017
Melbourne35.5%-5.8%November 2017
Brisbane41.1%-1.6%April 2018
Adelaide430.1%-1.2%December 2018
PerthN/A-1.7%-21.6%June 2014
Hobart<at peak>1.0%<at peak>October 2019

^ Months to recovery is calculated for regions with a positive gain in property values over the three months ending October, assuming values continue to rise at the same rate as the most recent three month trend.


Despite the earlier recovery period across the inner precinct of Melbourne, the prestigious inner east is recording the fastest rate of growth, with values up 8.3 per cent over the past three months and on track for a recovery within three months.

Brisbane is showing the next fastest recovery time frame; not because values are rising rapidly, but mostly because the correction in values across Brisbane was quite shallow (down 2.9 per cent from peak to trough).

The past three months of gains (+1.1 per cent or 0.4 per cent per month) has put Brisbane housing values on a path to recover within the next 4 months.

Sydney’s housing market is on track to post a recovery within six months, or around April next year if the current pace of growth continues. Housing values are trending higher rapidly, up 5.0 per cent over the past three months, however the correction was more substantial across Sydney, with housing values falling by 14.9 per cent from peak to trough.

Sydney dwelling values remained 10.4 per cent below their 2017 peak at the end of last month.

The recovery trajectory in Adelaide is looking more drawn out, with values rising at the quarterly rate of only 0.1 per cent.

Although housing values are down only 1.2 per cent since peaking, such a sluggish rate of appreciation is likely to see a prolonged recovery phase.

Despite what looks to be a long recovery period, two of Adelaide’s sub-regions have already reached new record housing values. Both the North and South of Adelaide posted a new record high for housing values in October this year.

A recovery in the housing market should help to provide some support for Australian economic conditions, boosting household wealth which will potentially lead to improved confidence and a greater willingness from households to spend, while also supporting the residential building and development sector where dwelling approvals have tanked.

On the flipside, for non-home owners, a recovery in housing values implies the affordability dividends provided by the recent housing downturn are now a thing of the past.

With housing values rising rapidly in some areas, we could see less first home buyer participation in the market as affordability pressures start to dampen activity across this important sector of the market.

ResidentialAustraliado not usePerthMelbourneHobartDarwinCanberraBrisbaneAdelaideConstructionReal EstateConstructionSector
AUTHOR
Tim Lawless
The Urban Developer - Director
Director
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Industry Stoush Looms Over Construction Code Pause

Patrick Lau
4 Min
Exclusive

New Wave of Capital Washes Over Evolving Surf Park Sector

Phil Bartsch
11 Min
North Sydney TUD Plus HERO
Exclusive

NSW Housing Fix Tips North Sydney into New Era

Vanessa Croll
7 Min
 GemLife site Currumbin Waters EDM
Exclusive

Pop-Out Apartments Power GemLife’s $450m Vertical Experiment

Clare Burnett
6 Min
Scape's Gurrowa place artist impression
Exclusive

Red Tape Blocking PBSA Housing Crisis Help, says Sector Pioneer

Leon Della Bosca
5 Min
View All >
Retail

Woolworths-Anchored Asset Changes Hands for $44m

Lindsay Saunders
Developer Marketing EDM
Sponsored

Why Developers Must Market Their Brand, Not Just Projects

Partner Content
Build-to-Rent

Local Residential Adds Nation’s Biggest BtR to Portfolio

Lindsay Saunders
The addition of the Gold Coast precinct makes the platform the largest in the Australian sector...
LATEST
Retail

Woolworths-Anchored Asset Changes Hands for $44m

Lindsay Saunders
2 Min
Developer Marketing EDM
Marketing

Why Developers Must Market Their Brand, Not Just Projects

Partner Content
3 Min
Build-to-Rent

Local Residential Adds Nation’s Biggest BtR to Portfolio

Lindsay Saunders
2 Min
The latest WA Government initiative is a $75 million Build to Rent Kickstart Fund adding to its 50 per cent land tax exemption for build to rent developments.
Build-to-Rent

WA Adds $75m Loan Boost to BtR Build Incentives

Renee McKeown
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/how-long-until-housing-values-reach-a-new-record-high