Australian dwelling values rose 0.8% in May, the 16^th consecutive month of growth and the largest monthly gain since October last year.

The mid-sized capitals continued to lead the pace of growth, with Perth home values up 2.0% in May, Adelaide rising 1.8% and Brisbane up 1.4%.  In dollar terms, it’s the equivalent of the median dwelling value rising by more than $12,000 month-to-month in each of these cities.

The remaining capital cities recorded milder conditions, ranging from a 0.6% lift in Sydney values to a monthly decline of -0.5% in Hobart and a -0.3% fall in Darwin.

Differences in the levels of available supply provide the best explanation for the variation in growth rates, with the number of properties available for sale in Perth and Adelaide holding more than -40% below the five-year average for this time of the year, while Brisbane listings are -34% below average. Inventory levels in these markets remain extremely low despite vendor activity lifting relative to this time last year.  Fresh listings are being absorbed rapidly by market demand, keeping stock levels low and upwards pressure on prices.

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