Sydney growing at more than twice the rate of any other capital, despite two years of boom

SYDNEY’S property market continues to shake off talk of bubbles and poor economic confidence, leading the way for growth for the first quarter of the year.

Figures released today in Corelogic RP Data’s Home Value Index show harbour city dwelling values were up by 5.4 per cent over the three months to April.

The growth was head and shoulders above the rest of the nation, with Darwin rating a distant second at 2.1 per cent. Adelaide (1.9 per cent), Canberra (1.7 per cent) and Melbourne (1.6 per cent) were the next best. Perth was the worst performer, with values falling by 1.6 per cent as it continues its post-mining boom descent into a trough cycle.

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The combined capitals rated 2.5 per cent, which is a positive result but fails to tell the complete story as Sydney is the only capital above the average and wholly responsible for dragging the figure upwards.

Sydney was also miles ahead with annual growth, recording 14.5 per cent year on year figures, on the back of already impressive growth across the two years prior. Melbourne was a distant second with 6.9 per cent growth, but well ahead of the third placed Brisbane (2.2 per cent). Again, the combined capitals figure of 7.9 per cent was thanks to Sydney.

CoreLogic RP Data head of research Tim Lawless said the gap in performance between Sydney and the other capitals was significant.

“While the combined capitals trend of dwelling value growth has been substantial, the rate of growth across the Sydney housing market stands head and shoulders above the other capital cities,” Mr Lawless said. “Sydney dwelling values are now 40.2 per cent higher relative to the May 2012 trough. If you factor in the previous 2009/10 phase of growth, Sydney values are now up 65.4 Per cent post GFC.”

Australia’s combined capital city values increased by 0.8 per cent in April, which was down from a 1.4 per cent increase in March. Every capital city had growth over April, except Canberra, which suffered a 1.5 per cent drop.

“Annually, the rate of capital gain has slowed since April last year, however, since the February rate cut the Sydney, and to a lesser extent, Melbourne housing markets have caught a second wind,” Mr Lawless said. / May 1, 2016