Last week’s CoreLogic Property Pulse gave a wider perspective of the ways the Australian property market has changed over the past decade throughout each of Australia’s biggest sub-state regions, revealing substantial change in house and unit values, as well as market movement.
From June 2008 through June 2018, national home values have risen by a cumulative 43.9%, with the combined capital cities recording an increase of 52.6% and the combined regional markets recording growth of 16.6%.
Houses values surged by 46.9% nationally over the past decade with combined capital city values rising at a faster pace (56.2%) than the combined regional markets, which were only up by 20%. Of the 88 biggest sub-state regions across the nation, 73 areas recorded a hike in home values over the past decade. The biggest sub-state regions in New South Wales (NSW), Victoria (Vic), Tasmania, Northern Territory or Australian Capital Territory have not recorded a decline in values over the last ten years. A majority of Western Australia’s (WA) biggest sub-state regions, on the other hand, have recorded decreases in values over the past decade.
The region to see the greatest gains in house values over the past decade was the South West region of Sydney, where values climbed 112.9%. On the other hand, house values at the following markets recorded the largest decline over the same duration – Outback (North) in WA, Outback (South) in WA, Mackay-Isaac-Whitsunday in Queensland (QLD), Central Queensland, Townsville.
“Value growth in NSW and Vic has been substantially stronger than growth elsewhere. In fact, the regions of NSW (Riverina) and Vic (North West) that recorded the weakest conditions over the decade have seen value growth well in excess of the best performing WA region (Perth-North West),” research analyst Cameron Kusher said.
In terms of the national unit values’ movements throughout the past decade, the report showed that they increased by 34.2%. Moreover, unit value growth in the combined capital cities (42%) and combined regional housing markets (0.4%) was similarly lower than that for houses, advancing only by 56.2% and 20%, respectively.
Among the biggest sub-state regions across the country, 53 have climbed in unit values over the past decade.
The South West region of Sydney recorded the greatest increase in house values of all the biggest sub-state regions (112.9%), and also saw the highest gain in unit values (98.0%). While house values doubled across seven regions in Australia over the past ten years, not one region has seen unit values double over the same period.
Only the Outer South West region of Sydney (81.0%) and Sydney’s Eastern Suburbs (78.2%), along with Sydney’s South West, have posted decade unit value growth of more than 75%. By comparison, 24 regions of the country have recorded house value growth over 75%.
Recording the largest declines in terms of unit values were Outback (North) WA, Outback (South) WA, Darling Downs-Maranoa in Qld, Central Queensland, and Townsville.
Kusher noted that house and unit values growth over the past decade has been very much slanted to strong growth in Sydney and Melbourne.
“While the last 10 years is not predictive of the future, dwelling values are already falling in Sydney and Melbourne and regional markets are currently outperforming capital cities. With housing in a downturn in Sydney and Melbourne and affordability stretched, at this point it seems unlikely the returns of the past decade will be replicated over the next 10 years,” he claimed.
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