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New research from CoreLogic RP Data has revealed that combined capital city home values have increased by 8.7 per cent over the 12 months to November 2015.
According to the group’s research analyst Cameron Kusher, Sydney and Melbourne are the only two to record increases above the average, while Perth and Darwin home values have declined below the average.
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“The reality is that while booming conditions have delivered great results to property owners in Sydney and Melbourne over the past two years, not every city has enjoyed this same success,” Mr Kusher said.
“Housing investment in Australia has generally been a successful and largely one-way bet over many years.
“Although this has been the case, home values have fallen in the past, are currently falling in some capital cities and will almost certainly fall again in the future.”
Mr Kusher said there is already some evidence that supports value falls in the Sydney and Melbourne property markets.
“Based on our data, we can see that falls have previously occurred and will no doubt happen again, however the question is how large; of course no one knows.
“Given that investor activity has been at a record high, building approvals have also hit record highs and record high levels of household leverage there is a possibility that falls could be larger than what we have seen in the past,” Mr Kusher said.
