Sydney, Melbourne capital gains drive national rise higher in August 2016: CoreLogic

National dwelling prices rose 1.1 percent in August with home value rises in Sydney and Melbourne leading the nation according to the latest Home value Index from CoreLogic.

Sydney dwelling values increased 1.4 percent month to month with Melbourne dwelling values up 1.5 percent.

Tim Lawless, CoreLogic head of research, said despite a strong month-on-month reading, the pace of annual capital gains has trended lower compared with the 2015 peak in growth conditions, when capital city dwelling values were rising at 11.1 percent per annum.

“The most recent twelve month period has seen dwelling values rise by a lower 7 percent per annum,” he said.

“However, the rate of annual growth in Sydney has virtually halved from a recent 18.4 percent peak to the current annual rate of 9.4 percent.

“Similarly, in Melbourne the annual growth trend peaked at 14.2 percent per annum last year and has since tracked back to 9.2 percent per annum over the most recent twelve month period.” 

“For the remaining capital cities, each city continued to show a modest trend in value appreciation.

“Signs are emerging that the pace of capital gains may be accelerating across Canberra and Hobart, with dwelling values up 7.6 percent and 6.5 percent respectively over the past twelve months.

“One year ago, Canberra’s annual growth rate was negative, at -0.9 percent, while in Hobart, values increased by only 1.5 percent.