- CANBERRA, AAP – Housing prices rose further across the nation in April, but at a slower pace than in the previous month as affordability constraints began to dampen demand.
The CoreLogic national home value index rose 1.8 per cent in April after bounding 2.8 per cent in the previous month, which was a 32-month high.
Even so, the index is 10.2 per cent higher from the COVID-19 low seen in September last year.
“The slowdown in housing value appreciation is unsurprising given the rapid rate of growth seen over the past six months, especially in the context of subdued wages growth,” CoreLogic’s research director Tim Lawless said.
“With housing prices rising faster than incomes, it’s likely price sensitive sectors of the market, such as first home buyers and lower income households, are finding it harder to save for a deposit and transactional costs.”
In the month, Darwin house prices led the pack with a 2.7 per cent rise, followed by Sydney, up 2.4 per cent. Perth saw the slowest price growth in the month among capital cities, up 0.8 per cent.
The four smallest capital cities – Adelaide, Hobart, Darwin and Canberra – recorded double digit annual growth reflecting a smaller COVID-related disruption and an earlier start to the growth phase last year.
In contrast, Melbourne is recording the lowest level of annual growth due to a larger downturn, attributable to the extended lockdown period last year.
The trend of house prices outperforming those for units sector continued through April.
“A preference shift away from higher density housing during a global pandemic is understandable, however a rise in flexible working arrangements also seems to be supporting greater demand for houses around the outer-fringes of capital cities,” Mr Lawless said.
“Relatively weak investor activity, compounded by a supply overhang in some high-rise precincts, is also dampening price growth in unit markets.”
CORELOGIC NATIONAL HOME VALUE INDEX FOR APRIL
National – up 1.8 per cent, up 7.8 per cent
Sydney – up 2.4 per cent, up 7.5 per cent
Melbourne – up 1.3 per cent, up 2.2 per cent
Brisbane – up 1.7 per cent, up 8.3 per cent
Adelaide – up 2.0 per cent, up 10.3 per cent
Perth – up 0.8 per cent, up 6.7 per cent
Hobart – up 1.0 per cent, up 13.8 per cent
Darwin – up 2.7 per cent, up 15.3 per cent
Canberra – up 1.9 per cent, up 14.2 per cent
Combined capitals – up 1.8 per cent, up 6.4 per cent
Combined regional – up 1.9 per cent, 13.0 per cent
Pace of house price rises slows in April
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