Property price growth continues to ease

The average rate of value growth for homes across the country has declined for the fifth month in a row, according to a new report published by CoreLogic this week (8 November). 

As per the findings, the monthly growth rate in Australian dwelling values for October 2021 was recorded at 1.49 per cent (a monthly increase of approximately $10,000) – a 0.02 per cent decrease compared to September. 

However, this latest figure reflects a consistent incremental decrease of value growth since May 2021’s 2.21 per cent.

This reduction has been most prominent for the top 25 per cent of property values, accounting for dwellings worth roughly $1,000,000 and above, which dropped from 3.5 per cent in March to 1.5 per cent throughout October. 

Dwellings in the middle 50 per cent (between $466,000 and $1,000,000) and in the lower 25 per cent ($466,000 or less) too have declined since March, but have remained relatively consistent in recent months, oscillating between 1.0 per cent and roughly 1.5 per cent since May. 

According to CoreLogic, the highest value segment has seen the greatest level of gains over the past 12 months at 25.4 per cent, while the middle of the market has recorded 18.4 per cent and 16.7 per cent for the lower end.

However, the report noted that “the volatility at the high end of the market, demonstrated by the rapid decline in growth rates, suggests the high end of the market can also expect a larger downturn in property values”.

Since March this year, most of the country’s capital cities have seen changes reflecting the national average, with Sydney values dropping from 3.7 per cent to 1.5 per cent, as of October. 

Melbourne (2.4 per cent to 1.0 per cent), Perth (2.5 per cent to -0.1 per cent), Hobart (3.3 per cent to 2.0 per cent), Darwin (2.3 per cent to 0.4 per cent), and Canberra (2.8 per cent to 1.9 per cent) have also reported overall declines during this period. 

However, Brisbane has grown from March’s 2.4 per cent to 2.5 per cent for October, while Adelaide has reported a value increase of 1.5 per cent to 2.0 per cent over this period.

According to this report, while property value growth is continuing to slow down, the figures still remain higher above the country’s decade average monthly value increase of 0.4 per cent. 

However, CoreLogic has also expressed that, due to the combination of a tighter credit environment and more normalised listings levels, monthly growth rates will continue to decline throughout 2022. 

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