(Australian Associated Press)
Australian capital city home-owners saw the value of their properties rise by an average of 10.9 per cent over the past year.
The latest CoreLogic Home Value Index shows that, when rental returns are factored in, housing earned a total capital return of 14.7 per cent.
CoreLogic head of research Tim Lawless says there’s a big range in the change in dwelling values between geographical areas and types of housing.
Sydney home prices surged 15.5 per cent and Melbourne’s 13.7 per cent over the year, but Perth prices slumped by 4.3 per cent.
“Those regional areas with intrinsic ties to the mining and resources sector have continued to record weaker housing market conditions since the end of the mining infrastructure boom, with Perth and Darwin recording the weakest housing market conditions across the capital cities,” Mr Lawless said in a statement.
Mr Lawless said regional differences in economic and demographic trends had affected housing markets differently with strong population growth and economic activity driving price growth in Sydney and Melbourne.
However, he noted that Hobart was the third strongest market in the country with home values leaping 11.2 per cent in 2016, and Canberra home values also jumped 9.3 per cent, which indicated the downturn in the Darwin and Perth housing markets may be finally bottoming out.
“Lifestyle markets are also becoming more popular as tourism improves and home owners look to leverage their new found equity,” Mr Lawless added.
But while capital city, lifestyle and coastal markets were strong, Mr Lawless said conditions were relatively sedate in other areas.
The index showed home prices in regional areas rose by just 2.8 per cent in 2016, led by NSW, where a 7.2 per cent rise in prices was recorded.