Australia’s housing markets continue to stave off a possible downturn, with the CoreLogic Home Value Index rising 1.5% in July from June, driven by Melbourne’s 3.1% gain, according to a report Tuesday.
On an annual basis, the average home price in eight capital cities across Australia increased 14.1% to A$625,000 (US$498,800).
CoreLogic does not offer a luxury segment in their report.
The strong monthly results came as a further relief to concerns about a possible market cooldown in the country. The composite price index for eight capital cities—Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart, Darwin and Canberra—rebounded 1.8% in June after falling into negative territory during the previous two months.
The recent bounce is partially a recovery from the seasonal slump in April and May, said Tim Lawless, head of research at CoreLogic. “However, other factors, such as stamp duty concessions for first-home buyers in New South Wales and Victoria, may also be having a positive impact on market demand,” he said in the report.
The two states introduced measures, effective July 1, to help first-time homebuyers break into the market. While it’s still too early to gauge the effectiveness of such incentives, Mr. Lawless said: “Historically, the first-time buyer segment has been very responsive to stimulus measures.”
Melbourne Outperforms Sydney
In July, Melbourne’s median home prices rose 3.1% from a month ago to A$655,000 (US$522,700). By comparison, home prices increased 1.4% to A$856,000 (US$683,200) in Sydney.
The annual home price growth rates for Melbourne and Sydney were 15.9% and 12.4%, respectively.
“Melbourne appears to be benefitting from consistently high population growth, which is creating strong demand for housing, as well as consistently high jobs growth and more affordable housing options relative to Sydney,” Mr. Lawless said.
|The July CoreLogic Home Value Index|
|Region||Median home price||M-o-M||Y-o-Y|
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