Australia’s housing market has recorded its best quarter of growth in 10 years, following a four per cent gain to the end of December.
Research group CoreLogic said the quarterly gain was the fastest since November 2009, and was led by a 6.2 per cent rise for Sydney homes.
However, the 1.1 per cent rate of growth during December was the weakest month of the quarter, following rises of 1.2 per cent and 1.7 per cent in October and November respectively.
“This would suggest that the pace of capital gains may have been dampened by higher advertised stock levels or worsening affordability pressures through early summer,” CoreLogic head of research Tim Lawless said.
Like Sydney, homes in Melbourne had strong growth – their values climbed 6.1 per cent for the quarter.
Brisbane and Adelaide had gains of 2.4 per cent and 1.4 per cent respectively, while there were also increases for Hobart (3.4 per cent) and Canberra (2.3 per cent).
There were losses for Perth, down 0.1 per cent, and Darwin, down 1.4 per cent.
Australian homes climbed 2.3 per cent in value in 2019, courtesy of a strong rebound in the second half of the year.
Mr Lawless said lower mortgage rates, a relaxation in borrower serviceability assessments, improved housing affordability and certainty around property tax policy were reasons for the rebound.