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Brisbane dwelling values rose by 1.8 per cent in February. Picture: Darren England.
FORGET the powerhouse Sydney and Melbourne property markets, it’s the underperforming capital cities which are now leading the property price growth charge.
Figures out today reveal Hobart was the star performer in February with its median values up by 2.9 per cent, followed by Adelaide, 1.9 per cent and Brisbane, 1.8 per cent.
Nationally dwelling values rose 0.5 per cent in February according to the latest CoreLogic RP Data hedonic home value index.
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Sydney values rose by only 0.5 per cent and were down by 0.2 per cent for the quarter, although CoreLogic RP Data research analyst Cameron Kusher said that was not cause for concern.
“Basically it was because of a weak November and December monthly figures, that is causing that,’’ he said.
Mr Kusher said for the year to date in Sydney values were up by 1 per cent.
Melbourne values increased 0.3 per cent in February, while Perth and Canberra were the only capital cities to record a drop in values for the month with their medians down 1.1 per cent and 0.2 per cent respectively.
According to Cameron Kusher some of Australia’s recently underperforming capital cities lead property price growth in February.Source:Supplied
“The trend in home value growth is showing signs of increasing in those markets that have previously underperformed,’’ Mr Kusher said.
“Affordability constraints aren’t as apparent in these cities and rental yields haven’t been compressed to the same event as what they have in Melbourne or Sydney.
“Home values increased in Brisbane by 5.5 per cent over the past year, which is the fastest annual rate of value growth in a year.
“In Hobart home values are 6.2 per cent higher over the year, which is the fastest annual rate of home value growth since July 2010.
Mr Kusher believed Brisbane was benefiting from recent job creation.
“If you look at the most recent interstate migration figures, Brisbane was pretty much at record lows, but it did look to be turning, so maybe if people are priced out of Sydney more of them are starting to look into the Brisbane housing market.
“Tourism is really booming down in Tasmania, that is probably helping the housing market down there.
“The last time in 2004, 2005 when Hobart’s market really surged, what happened was a lot of people were migrating there from Melbourne or buying lifestyle properties in Hobart from Melbourne, people in Melbourne have a lot of equity in their properties at the moment so perhaps some of that is starting to happen.’’