The March CoreLogic Hedonic Home Value Index has revealed a 0.4% rise in regional dwelling values, offsetting a 0.2% decline in capital city home values. Regional areas outperformed capitals over the quarter as well, rising 1.1% while capital city home values posted a 0.9% decline.
“The stronger combined regional markets performance continues a trend that began to emerge in October last year where regional housing markets showed an overall improvement in the pace of capital gains while the combined capital’s trend softened,” CoreLogic head of research, Tim Lawless, said.
Six of the eight capital cities saw values fall over the first quarter of the year, from a 1.8% drop for Sydney to a 0.1% decline for Darwin.
“The broad-based falls highlight that the softening trend in the Australian housing market is largely due to weaker conditions in Sydney; however, most other capitals are also recording subtle falls. Dwelling values were steady over the quarter in Brisbane, and have continued their strong run of growth across Hobart, up 3.4%,” Lawless said.
The unit market in Sydney and Melbourne remained more resilient than detached housing, with Sydney unit values up 1.9% over the year to the end of March while detached housing values were down 3.8%. Similar conditions exist in Melbourne, where units rose 6.6% over the 12 months to the end of March while house values rose 4.9%.
“The stronger performance from the unit sector may suggest that buyer demand is becoming more concentrated in the medium to high-density sector where entry prices are lower and commuting times are often more convenient when compared with the detached housing markets around the outer fringes of the city,” Lawless said.