This morning’s RP Data results show house prices are moving in very different directions nationwide
This morning’s RP Data results show house prices are moving in very different directions nationwide
Read these two statements about RP Data’s October home value index, released earlier today:
Headline statement: dwelling values across Australia’s state capitals rose 1% in October*
Small print: dwelling values in five out of eight state capitals fell in October*
So in other words, the headline statement doesn't reflect local realities for a huge proportion of those who read it. Yet this is not RP Data intending to mislead readers, but a reflection of a growing trend: house prices in different parts of Australia are heading in fundamentally different directions.
For our news analysis in the forthcoming MPA issue 14.12 we’ve been looking at house price developments and outlook, talking to economists and leading brokers to help us separate the small print from the headline statements.
What we’ve found is that Australian house prices are at a crossroads: Sydney and Melbourne prices will continue to grow; prices in most other areas will continue to fall. Indeed prices in Sydney grew 1.3% in October, those in Melbourne by 1.9% in October, and home values fell in every other capital city but one.
The difference is most house prices in most capital cities reflect the poor state of the Australian economy, but those in Sydney and Melbourne reflect the wealth of foreign buyers, who aren’t going anywhere soon, and dire housing undersupply. In fact the QBE Housing Outlook predicts prices in Sydney won’t come down until 2017, when new developments begin to reduce the housing shortage.
Also worth noting are RP Data’s figures for Brisbane, where prices rose 0.6% in October. One top broker, who deals heavily with Chinese clients, identified Brisbane as the next destination for foreign buyers put off by Sydney house prices. However he also added that business was still quiet in Queensland, as the state was still recovering from the 2010-11 floods.
For the full overview, and tips and opinions from industry leaders, read our news analysis ‘At the Crossroads’ in issue 14.12, on desks mid-November. For the full RP Data CoreLogic Home Value Index October report, see Australian Broker.
*these aren't actual headlines, but are intended to reflect likely media reactions
Read these two statements about RP Data’s October home value index, released earlier today:
Headline statement: dwelling values across Australia’s state capitals rose 1% in October*
Small print: dwelling values in five out of eight state capitals fell in October*
So in other words, the headline statement doesn't reflect local realities for a huge proportion of those who read it. Yet this is not RP Data intending to mislead readers, but a reflection of a growing trend: house prices in different parts of Australia are heading in fundamentally different directions.
For our news analysis in the forthcoming MPA issue 14.12 we’ve been looking at house price developments and outlook, talking to economists and leading brokers to help us separate the small print from the headline statements.
What we’ve found is that Australian house prices are at a crossroads: Sydney and Melbourne prices will continue to grow; prices in most other areas will continue to fall. Indeed prices in Sydney grew 1.3% in October, those in Melbourne by 1.9% in October, and home values fell in every other capital city but one.
The difference is most house prices in most capital cities reflect the poor state of the Australian economy, but those in Sydney and Melbourne reflect the wealth of foreign buyers, who aren’t going anywhere soon, and dire housing undersupply. In fact the QBE Housing Outlook predicts prices in Sydney won’t come down until 2017, when new developments begin to reduce the housing shortage.
Also worth noting are RP Data’s figures for Brisbane, where prices rose 0.6% in October. One top broker, who deals heavily with Chinese clients, identified Brisbane as the next destination for foreign buyers put off by Sydney house prices. However he also added that business was still quiet in Queensland, as the state was still recovering from the 2010-11 floods.
For the full overview, and tips and opinions from industry leaders, read our news analysis ‘At the Crossroads’ in issue 14.12, on desks mid-November. For the full RP Data CoreLogic Home Value Index October report, see Australian Broker.
*these aren't actual headlines, but are intended to reflect likely media reactions
