The two tiered growth rates of the Australian property market continued during July, with Melbourne and Sydney streets ahead of the rest of the nation.
The latest data from CoreLogic RP Data shows that Melbourne traded places with Sydney over the past three months to record the highest rate of capital growth.
Home values in Melbourne were up 6.1 per cent for the three months ending 31 July, increasing the annual growth rate to 11.5 per cent.
Sydney's remarkable growth run also continued, up 5.4 per cent for the quarter and 18.4 per cent annually. The annual growth rate in Sydney is now at it's highest since December 2002.
Noteable statistics from the past 3 months include:
- Best performing capital city: Melbourne +6.1 per cent
- Weakest performing capital city: Darwin -3.0 per cent
- Highest rental yields: Darwin houses with gross rental yield of 5.7 per cent and Darwin & Brisbane Units at 5.5 per cent
- Lowest rental yields: Melbourne houses with gross rental yield of 3.0 per cent and Melbourne units at 4.1 per cent
- Most expensive city: Sydney with a median dwelling priceof $790,000
- Most affordable city: Hobart with a median dwelling price of $305,000
Commenting on what's ahead for the property market, CoreLogic RP Data's head of research Tim Lawless said, with value growth once again accelerating across Sydney and Melbourne, the market evolution in mortgage lending policies will will provide a timely test for housing demand, particularly from investors.
The full CoreLogic RP Data results and commentary can be viewed here.