Although growth conditions were substantially different from region to region, overall, the latest CoreLogic Hedonic Home Value Index reveals further gains across most capital city housing markets last month.
With the current growth phase now in its 52nd month, capital city dwelling values continued to show a strong headline rate of growth over the September quarter, with the Index rising 2.9% over the past three months.
The combined capital city index - which is heavily weighted towards the Sydney and Melbourne markets - recorded a 1.0% month-on-month gain, which took capital city dwelling values 41.3% higher.
Melbourne was the top performing market, with values pushed 5.0% higher over the third calendar quarter, mostly due to the rise in house values (+5.2%). Canberra showed the second highest rate of growth over the quarter, with values up 4.5%, followed by Sydney at 3.5%.
When we look at Australia's combined regional markets, house values slipped 1.1% lower over the three months to the end of August. And while modest declines were recorded across most of the ‘rest of state’ housing markets, the weakest conditions can still be found in regional Western Australia. House values her have fallen 12.4% over the past 12 months.
Whilst the headline rate of growth still remains positive across most cities, some have experienced moderation, compared to a year ago. The only capital city markets where the current quarterly rate of growth was higher were Hobart, Canberra and Adelaide.
The quarterly pace of capital gains in Sydney peaked over the June quarter of 2015 at 7.4% and, similarly, Melbourne’s quarterly rate of capital gain peaked at 7.9% over the same quarter.