Residential property values increased across the nation in October apart from locked-down Melbourne, although even there the decline in home prices is easing.
CoreLogic’s national home value index rose 0.4 per cent in October, ending five months of consistent declines.
Although values were lower across Melbourne through October, the decline of 0.2 per cent in the month was the smallest drop since the COVID-19 related downturn began in April.
CoreLogic said since the announcement that private home inspections were once again permitted across Melbourne, new property listings have surged, clearance rates have lifted and buyer activity is recovering.
“Based on this recent trend in housing values and activity, it seems likely we will see Melbourne follow the other capital cities towards a recovery over the coming month,” it says.
Meanwhile, dwelling values increased by one per cent or more in each of the smallest four capital cities – Adelaide, Hobart, Darwin and Canberra.
Values in Brisbane, Adelaide, Hobart and Canberra also reached record highs.
CoreLogic’s head of research Tim Lawless said the rise in capital city housing values over the month was entirely attributable to a 0.4 per cent lift in house values which offset a 0.2 per cent fall in unit values.
“Through the COVID period so far, unit values have actually shown a smaller decline in values than houses, but this is likely to change,” he said.
“Almost two-thirds of Australian units are rented, and rental conditions have weakened, especially in the key inner city precincts of Melbourne and Sydney.”
He believes low levels of investment activity, relatively high supply of unit stock in inner-cities and international border closures are key factors that imply units will under-perform relative to houses over the medium term.
CORELOGIC NATIONAL HOME VALUE INDEX FOR OCTOBER
National – plus 0.4 per cent
Sydney – plus 0.1 per cent
Melbourne – minus 0.2 per cent
Brisbane – plus 0.5 per cent
Adelaide – plus 1.2 per cent
Perth – plus 0.6 per cent
Hobart – plus 1.0 per cent
Darwin – plus 1.2 per cent
Canberra – plus 1.0 per cent
Combined capitals – plus 0.2 per cent
Combined regional – plus 0.9 per cent