Home values in Australia increased 2.2% in the three months to September, a dip from the 2.4% growth recorded over the three months to August, while the combined value of residential properties across the country hit $10.1 trillion, up from $10 trillion the prior month, as reported by CoreLogic.
Eliza Owen (pictured above), head of research at CoreLogic Australia, said the upgraded home value index model showed a 3.9% lift in national dwelling values in the year to September, with the shift into positive territory occurring in August.
CoreLogic’s latest Monthly Chart Pack showed the combined capital cities’ dwelling market value rose 0.9% in September, a slight improvement from the 0.8% growth in August.
An estimated 39,216 properties were sold in September nationally, slightly lower than the five-year average of 40,607 per month. In capital cities, sales totaled 24,996 in the month, down -1.8% from the historic average, while the combined regional market saw 14,220 sales, a decline of -6.1% from the five-year average.
The median time to sell property nationally remained at 30 days in the September quarter, but regional areas have seen an increase in time on market year-on-year, reflecting other metrics of softer market performance in the regions over the past 12 months.
Vendors are offering smaller discounts on their properties, The national median vendor discount was -3.8% in the September quarter, a notable improvement from a recent low of -4.3% at the end of last year.
Over the four weeks to Oct. 8, 38,428 new listings were observed at a national level. New listings were trending higher into the start of the spring selling season and were just down -3% compared to the historic five-year average.
Over the same period, total listings numbered 140,524 nationally and continued to trend lower than the previous five-year average due to absorption from sales at a national level, although some markets saw an increase in total listings.
The combined capital cities’ clearance rate eased slightly to an average of 65.2% in the four weeks to Oct. 8, down from 66.1% in the previous month.
CoreLogic’s Monthly Chart Pack also showed that rental values in Australia rose 0.7% in September, taking the annual increase to 8.4%, which was above the previous decade’s average.
Dwelling approvals surged 7% in August, driven by an 8.8% lift in unit approvals and a 6% rise in detached house approvals. Overall, new dwelling approvals have been tracking roughly -21% below the decade average since the start of the year, due in part to high interest rates, land values, and construction costs.
Also featured in CoreLogic’s Chart of the Month is the Cordell Construction Cost Index (CCCI), which indicated a 0.5% rise in construction costs through the September quarter, suggesting that construction costs have now normalised.
Access and read CoreLogic’s Monthly Housing Chart Pack – October 2023.
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