Australian capital city house prices have risen sharply since the early 2000s, in some instances more than others.
Nothing quite demonstrates that point than the excellent chart from Pete Wargent posted on Twitter today following the release of Australia’s Residential Property Price Index for the September quarter from the Australian Bureau of Statistics.
Does it tell a story, revealing the divergence in individual capitals over the past 14 years.
After surging higher on the back of Australia’s commodity and mining infrastructure boom either side of the global financial crisis, prices in Perth and Darwin have come back to the pack in recent years, reflecting softer economic conditions.
In comparison, after lagging the mining capitals for more than a decade, prices in Australia’s non-mining capitals, especially Sydney, have risen sharply since the Reserve Bank of Australia started cutting interest rates in late 2010.
While prices in nominal terms have increased in every capital city since 2003, the chart underlines the point that prices can both rise and fall in individual markets, and often out of sync with other parts of the country.
Something to remember given the increased scrutiny on Sydney and Melbourne property prices seen in recent months.