Australian property values recovered to new record highs in March, reversing the recent half a percent dip in values between November and January.
CoreLogic’s national home value index was up 0.4%, continuing the growth trend for the second consecutive month following February’s 0.3% rise.
The monthly rise in values was broad-based, with every capital city except Hobart recording a positive change, along with each of the rest-of-state regions.
The monthly change across the capitals ranged from a 1.0% gain in Darwin to a -0.4% fall in Hobart.
Improved sentiment following the February rate cut is likely the biggest driver of the turnaround in values, along with the cut’s direct influence of a slight improvement in borrowing capacity and mortgage serviceability.
Sydney and Melbourne look to have turned a positive corner, with values across both cities rising over the past two months. Although Sydney home values remain -1.4% below their record high. In Melbourne, where the downturn has been long running following the March 2022 peak, values remain -5.6% below their record high, despite rising 0.9% over the past two months.
