Sydney’s home prices have surged by 20.9 per cent in the past 12 months, while Melbourne grew by 13.1 per cent as the lockdowns failed to dampen strong buyer demand, the CoreLogic August home index, due on Wednesday, is likely to show.
For the month of August, Sydney dwelling prices have risen by 1.8 per cent, taking the total growth from the start of the year to 19.7 per cent.
Melbourne home prices climbed by 1.2 per cent for the month and have risen by 12.4 per cent this year.
Brisbane is on track to post growth of 2.1 per cent and Adelaide 1.9 per cent. Across the five capital cities, dwelling prices had risen by 1.5 per cent on average.
All capitals have posted solid gains in home prices since the start of the year, with Brisbane jumping by 16.3 per cent, Adelaide by 12.8 per cent and the combined capitals by 15.6 per cent.
Shane Oliver, AMP Capital chief economist, said that while the latest lockdowns have not caused a big upset to prices, the pace of monthly gains have slowed significantly since they peaked in March.
Monthly price growth in March hit 3.7 per cent in Sydney and 2.4 per cent in Melbourne.
“The market has cooled and is definitely not as hot as it was back in March, simply because of worsening housing affordability,” Dr Oliver said. “But the lockdowns haven’t caused a major slump in prices, and certainly things have held up a lot better than last year.
“Nationwide we’re looking at a price rise of about 1.5 per cent for the month, which is stronger than I was assuming before the lockdown, so we’re still on track to see around 20 per cent growth this year.”