December 01, 2015
New housing data has confirmed dwelling values fell across five of the eight capital cities during November.
The latest CoreLogic RP Data Home Value Index for the combined capitals fell 1.5% in November.
The biggest fall was in Melbourne with dwelling values down 3.5%, while Sydney values were down 1.4%. Other capitals to record a fall for November were Hobart down 2.4%, Darwin down 1.3% and Canberra down 0.5%.
Year on year growth for the combined capitals was still at a respectable 8.7%, with Sydney 12.8% and Melbourne 11.8% leading the way.
According to CoreLogic RP Data head of research Tim Lawless, slower housing market conditions for Sydney and Melbourne became evident earlier in the year and continued throughout November.
“The fact that mortgage rates have risen independently of the cash rate has, in all likelihood, become a contributor to the slowdown in housing market conditions, as well as tighter lending practices evidenced by a recent reduction in lender risk appetite for investment loans and high loan to valuation ratio mortgages."
Highlights over the three months to November 2015
• Best performing capital city: Canberra +2.0 per cent
• Weakest performing capital city: Hobart -2.9 per cent
• Highest rental yields: Hobart houses with gross rental yield of 5.4 per cent and Darwin Units at 5.5 per cent
• Lowest rental yields: Melbourne houses with gross rental yield of 3.0 per cent and Sydney units at 4.1 per cent
• Most expensive city: Sydney with a median dwelling price of $810,000
• Most affordable city: Hobart with a median dwelling price of $335,000
The full CoreLogic RP Data results and commentary can be viewed here.