Commercial property sentiment improved in Q4 but remained weak and below average
Welcome to CoreLogic’s housing market update for February 2024.
Australia’s housing upswing continued through the first month of 2024 with CoreLogic’s National Home Value Index rising 0.4% in January. Up from the 0.3% increases seen in November and December, this marks the 12th straight month of value rises.
Beneath the headline result, housing trends remains diverse around the country. Melbourne, Hobart and the ACT all recorded a subtle decline over the month, while Perth, Adelaide and Brisbane values continued to rise at the monthly rate of 1% or more. The remaining capital cities recorded relatively flat conditions over the month.
House values have continued rising at a faster rate than unit values in January, with the gap between median capital city house and unit values rising to a record high of 45.2% in January. Such a wide gap is the result of house values recording more than three times the capital gain of units since the onset of the pandemic. Since March 2020 capital city house values have surged 34% higher compared with an 11% rise across the unit sector. This trend has continued in January with house values up half a percent over the month, adding around $4,800 to the median house value while units increased a small 0.1%, equivalent to a $900 lift. It seems that most Australians are willing to pay a higher premium than ever for a detached home.
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