While combined capital city home values have increased by 6.4% over the past 12 months, analysing the rate of capital gains across different valuation brackets reveals there is some differences in the rate of dwelling value appreciation.

The CoreLogic RP Data Home Value Index shows that combined capital city home values increased by 6.4% over the 12 months to March 2016.  The stratified version of the CoreLogic RP Data Index provides a more detailed view on the rate of capital gains across three broad market segments: the most affordable quarter of capital city suburbs, the middle 50% of capital city suburbs and the most expensive quarter of capital city suburbs.

Annual change in capital city home
values across market segments

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According to the CoreLogic RP Data Stratified Hedonic Index, the most affordable quarter of suburbs have recorded annual value growth of 6.6% compared to a 6.4% rise across the middle market and a 7.0% rise across the most expensive suburbs.  

Annual change in major capital city home
values across most affordable suburbs

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Annual change in major capital city home
values across most expensive suburbs

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While the annual figures show the most expensive suburbs recording the strongest value growth, over the past 3 months, value rises have been more uniform with little difference between the broad value based segments of the market. 

Annual change in major capital city home
values across middle market suburbs

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The most affordable suburbs have seen values move 1.8% higher over the March quarter, followed by the most expensive suburbs (1.7%) and the middle market (1.6%).

Across individual capital cities, this data is also published however, it is only available across the 5 largest capital city markets.

Sydney – home values across the city have increased by 7.4% over the past year after annual growth peaked at 18.4% in July 2015.  Over the past year the most affordable suburbs have seen values rise by 8.0%, the middle market values are 6.6% higher and the most expensive suburbs have recorded value rises of 8.8%.  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.

Melbourne – has recorded home value growth of 9.8% over the past year, down from a recent peak of 14.2% in September 2015. The most affordable suburbs have recorded value rises of 9.7% compared to 10.5% across the middle market and 10.0% across the most expensive suburbs.  Growth is fairly steady across the affordable market but slowing across the middle and most expensive suburbs.

Brisbane – has seen home values increase by 4.5% over the past year with the rate of value growth higher than it was a year ago.  The most expensive suburbs have recorded value growth of 4.6% over the past year compared to a 5.1% rise in the middle market and a 5.7% rise across the most affordable suburbs.  The annual rate of growth is generally trending higher across each segment.

Adelaide – home value changes have been fairly steady having increased by 3.2% over the past year.  The most expensive suburbs have seen values rise 3.2% compared to a 3.1% increase across the middle market and a 2.9% increase across the most affordable suburbs.  Across each segment growth is fairly steady with the rate of capital gain holding reasonably firm over the past twelve months.

Perth – is the only major capital to have seen value falls over the past year, however, the annual rate of decline has started to improve, easing from -4.1% in November 2015 to the current annual decline of -2.0%.  Across the broad valuation segments, home values have fallen -0.5% across the most affordable suburbs, are -1.5% lower across the middle market and are -2.1% lower across the most expensive suburbs.  Across each segment values are still falling but the rate of decline in values has slowed.

The CoreLogic Stratified Home Value Index highlights the importance of looking beneath the broad headline figures. Different markets within a city can be performing quite differently to what the over-arching statistics for a capital city market shows, not only across valuation based segments of the market, but also across housing types and geographically.