How Did the Housing Market Perform Over the Financial Year?

How Did the Housing Market Perform Over the Financial Year?

Over the past 20 financial years there have only been two years in which combined capital city dwelling values have fallen.

Over the last financial year, combined capital city dwelling values increased by 9.6% which was actually greater than the 8.3% rise over the 2015-16 financial year.  Combined capital city dwelling values have now increased over five successive financial years however, prior to these increases there were successive financial years in which values fell (-1.4% in 2010-11 and -3.6% in 2011-12).  Across the individual capital cities the growth story over recent financial years has been vastly different.

Sydney

Dwelling values increased by 12.2% over the past year and it was the fifth successive year in which values rose.  Value growth was slightly higher than the 11.3% over the previous financial year.

2017-07-14--Sydney

Melbourne

Values have now increased for five successive financial years with each of those years progressively seeing a faster rate of value growth.  Over the past year, values increased by 13.7% which was their greatest increase over a financial year since 2009-10.

2017-07-14--melbourne

Brisbane

A 2.0% increase in values over the past financial year was down on the 5.3% the previous year.  Brisbane values have increased over each of the past five years however, last year was the slowest rate of growth since 2012-13.

2017-07-14--brisbane

Adelaide

The 2.4% rise in values over the past year eclipsed the 2.1% increase the previous year and marked the fifth consecutive financial year in which values increased.

2017-07-14--adelaide

Perth

Dwelling values have fallen over each of the past three financial years however, the rate of decline has slowed from -4.7% in 2015-16 to -1.3% in 2016-17.  At no other time over the past 20 years have values fallen over three successive financial years in Perth.

2017-07-14--perth

Hobart

The 6.8% increase in dwelling values over the past financial year was the greatest increase in values over a financial year since they rose by 8.5% in 2005-06.

2017-07-14--hobart

Darwin

Dwelling values have fallen for three successive financial years. The -7.0% fall in values over the year was the largest annual decline since values fell by -12.6% over the 2010-11 financial year.

2017-07-14--darwin

Canberra

Values rose by 9.6% over the last financial year which was the greatest rise in values over a financial year since 2009-10 when values increased by 13.3%.

2017-07-14--canberra

In most capital cities, the rate of value growth over the past financial year was superior to that over the previous year. The exceptions were Brisbane and Darwin. A number of cities recorded their greatest increases in values in a number of years highlighting that the rate of growth has been accelerating.

Two of the primary factors influencing the rebound in capital gains during the most recent financial year was the rebound in investment activity after 2015/16 saw investment activity slow on the back of changed prudential policies implemented by APRA as well as successive rate cuts in May and August last year that added further incentive to property buyers. 

With a new round of macroprudential policies announced at the end of March this year, its likely there will be a similar, if not more pronounced slowdown in investment activity across the housing market. Coupled with affordability constraints and higher mortgage rates, we expect the 2017/18 financial year will record a less substantial rate of capital gains that what was seen in 2016/17.


About CoreLogic

CoreLogic Australia is a wholly owned subsidiary of CoreLogic (NYSE: CLGX), which is the largest property data and analytics company in the world. CoreLogic provides property information, analytics and services across Australia, New Zealand and Asia, and recently expanded its service offering through the purchase of project activity and building cost information provider Cordell. With Australia’s most comprehensive property databases, the company’s combined data offering is derived from public, contributory and proprietary sources and includes over 4.4 billion decision points spanning over three decades of collection, providing detailed coverage of property and other encumbrances such as tenancy, location, hazard risk and related performance information.

With over 20,000 customers and 150,000 end users, CoreLogic is the leading provider of property data, analytics and related services to consumers, investors, real estate, mortgage, finance, banking, building services, insurance, developers, wealth management and government. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and geo spatial services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. CoreLogic employs over 650 people across Australia and in New Zealand. For more information call 1300 734 318 or visit www.corelogic.com.au.

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