Unsurprisingly, Sydney and Melbourne were the standout performers, with property prices surging 11.3% and 11.5% respectively across the two capital cities.
But while property prices continued to soar throughout FY16 in both Sydney and Melbourne, the story was a little different in some of the other capital cities – notably Perth and Darwin.
Over the 12 months to July, property values in Perth recorded a 4.7% drop, while Darwin endured a 1.1% fall in dwelling prices.
Looking at the data, it would appear Perth and Darwin are suffering from reduced housing demand resulting from a sharp downturn in migration and weaker employment opportunities.
Across the combined capital cities, property values were up 8.3% over the 2016 inancial year. While this is lower than the price growth recorded over the previous two years, when values rose by 9.8% and 10.1% in FY15 and FY14 respectively, the rate of growth remains relatively strong by historical standards.
Moving forward, Sydney and Melbourne, Brisbane and Hobart are expected to remain relatively robust, while Perth and Darwin are expected to endure a further flow down in price growth.
Tim Lawless, CoreLogic RP Data