Top end is still rising
If you have to ask the price you probably can’t afford it and that’s certainly the case with the nation’s most expensive homes during the past year.
Sydney’s dearest houses and apartments increased by a higher value than the city’s middle and cheapest homes, according to a CoreLogic RP Data survey.
All up, Australian capital-city home values jumped 6.4 per cent in the year to March, with the most expensive suburbs achieving the largest price rises of 7 per cent, while the cheaper suburbs gained 6.6 per cent. The middle sector — comprising 50 per cent of the housing market — rose 6.4 per cent.
Sydney home values jumped 7.4 per cent after peaking at 18.4 per cent growth in July, CoreLogic RP Data says. The most expensive Sydney suburbs, including Darling Point, Point Piper and Vaucluse, recorded price rises of 8.8 per cent, up on the 8 per cent increases seen in the cheapest suburbs and 2.2 per cent higher than middle-market values.
“Across each segment the annual rate of value growth is slowing, however the premium end of the housing market continues to record a higher rate of capital gain,” CoreLogic RP Data says.
Home values jumped the most in Melbourne in the past year, up 9.8 per cent, but were down significantly from their 14.2 per cent peak in September.
Unlike Sydney, Melbourne’s most expensive suburbs, such as South Yarra, Kew and Toorak, sustained 10 per cent increases, down on the 10.5 per cent value increases achieved in the middle market but up on the 9.7 per cent rise in the cheaper suburbs.
Brisbane’s most expensive houses bucked the Sydney trend with its dearest suburbs, such as Hamilton and Ascot, recording price growth of 4.6 per cent across the year compared with 5.7 per cent in its most affordable suburbs. Overall home values increased 4.5 per cent.
Adelaide home values increased by just 3.2 per cent in the year to March. “The most expensive suburbs have seen values rise 3.2 per cent compared to a 3.1 per cent increase across the middle market and a 2.9 per cent increase across the most affordable suburbs,” CoreLogic RP Data says. “Growth is fairly steady in the cheaper, middle and more expensive markets, with the rate of capital gain holding reasonably steady over the past 12 months.” Adelaide’s most expensive suburbs include Medindie and Unley Park.
Perth is the only major capital to have sustained value falls. “However, the annual rate of decline has started to improve, easing from minus 4.1 per cent in November 2015 to the current annual decline of minus 2 per cent,” CoreLogic RPData says.
Prices fell 0.5 per cent across Perth’s most affordable suburbs, are down 1.5 per cent across the middle market and 2.1 per cent lower across the most expensive suburbs, such as Peppermint Grove and Dalkeith. “Values are still falling but the rate of decline in values has slowed,” CoreLogic RP Data says.