Dwelling values across capital cities recorded a second month of capital gains in July with dwelling values up by 0.6 per cent over the month following a 1.0 per cent rise in June.
The RP Data-Rismark Hedonic Home Value Index posted a second successive rise in capital city dwelling values over the month of July; Across the combined capital cities, dwelling values rose by 0.6 per cent over the month with the rises being relatively consistent over the first three weeks of July followed by a -0.2 per cent fall over the final week of the month.
Over the three months to the end of July, capital city dwellings have posted an increase of 0.2 per cent.
Dwelling values across the combined capital cities are now down only -0.6 per cent since the start of this year representing a rebound relative to this year’s low point on 30 May when values were 2.2 per cent below the calendar year starting level.
According to RP Data’s research director Tim Lawless, the July results were heavily influenced by improving values across the most expensive capital city markets.
“The July rise was not as broad-based as the June results, with the month-on-month increase primarily being associated with the Sydney and Melbourne markets where dwelling values rose 1.2 per cent and 1.4 per cent respectively.
The July result, when viewed together with the positive June result, suggests housing markets may be starting to respond to lower mortgage rates, which according to the RBA’s latest Board meeting minutes are around 50 basis points below their 15-year average.”
Rismark CEO Ben Skilbeck, added, “Among the capital cities there remains significant differences in performance. While both Sydney and Melbourne experienced gains over the month, Adelaide declined -2.5 per cent. On a year to date basis, Sydney values have risen 1.7 per cent while at the other end of the spectrum, Melbourne and Adelaide have experienced declines of -2.7 per cent”.
According to Tim Lawless, at the combined capital city level the July rise was fairly evenly dispersed between houses and units.
“House values were up by 0.6 per cent over the month while unit values rose 0.7 per cent. Over the last 12 months it is clear that unit values have been the most resilient to value falls with the Home Value Index showing -1.6 per cent fall in unit values compared with a -2.6 per cent fall in house values.”
Rental rates are continuing to rise; across the capital cities weekly rents have risen by 3.3 per cent over the first seven months of the year. Increases in weekly rents have been recorded across all capital cities over the last seven months apart from Hobart and Adelaide.
The largest rises in weekly rents over the year to date can be found in Perth (13.7%) and Darwin (5.4%).