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Spring in the step of Sydney house prices

CoreLogic HVI house prices September 19

The national property market posted its strongest monthly gains in two years as Sydney and Melbourne continue to show growth.

National property prices saw their first monthly increase since October 2017 as Melbourne and Sydney both posted healthy value gains over August. 

Dwelling values went up 0.8% nationwide over the month, according to the latest numbers from CoreLogic, with Sydney and Melbourne up 1.6% and 1.4% respectively. Prices also went up in Canberra, Hobart and Brisbane.

The positive national figure masked ongoing weak performance in Darwin and Perth, which were both down for the month along with Adelaide. 

Looking beyond monthly movements, Sydney, Melbourne and Hobart were also all up over the three winter months, although only the Apple Isle capital and Canberra were in positive territory over the year. 

Capital city Month Quarter Annual
Sydney 1.6% 1.9% -6.9%
Melbourne 1.4% 1.8% -6.2%
Brisbane 0.2% -0.1% -2.1%
Adelaide -0.2% -1% -1.1%
Perth -0.5% -1.8% -8.8%
Hobart 0.5% 1% 3.1%
Darwin -1.2% -1.7% -9.7%
Canberra 0.8% -0.4% 1.2%
National (combined capitals & regionals)  0.8% 0.6% -5.2%

Source: CoreLogic. 

 "The significant lift in values over the month aligns with a consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remains low," said CoreLogic head of research, Tim Lawless.

Clearance rates in both Sydney and Melbourne are now at their highest levels since early 2017, according to CoreLogic.  

"It’s likely that buyer demand and confidence is responding to the positive effect of a stable federal government, as well lower interest rates, tax cuts and a subtle easing in credit policy,” Lawless said.

"While the ‘recovery trend’ is still early, it does appear that growth trends are gathering some pace, particularly in the largest capital cities.” 

CommBank Senior Economist, Kristina Clifton, went a step further, arguing that based on the scale of the price increases, "it could be said that the boom-type conditions are returning".  

Clifton also suggested that "rising house prices may also provide a boost to household spending through the wealth channel". 

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Past performance is no guarantee of future performance. The commentary provided from external companies that are not a member of the Commonwealth Bank of Australia Group of Companies (the CBA Group) does not represent an endorsement, recommendation, guarantee or advice in regard to any matter. The CBA Group does not accept any liability for losses or damage arising from any reliance on external companies and their products, services and material.