2017 was a year when Australia's housing market didn't go to script

Quinn Rooney/Getty Images

When it’s all said and done, 2017 will be likely be regarded as a year when Australia’s housing market didn’t go to script.

Faced with a wall of supply following Australia’s record-breaking apartment construction boom in previous years, many were concerned that it would lead to widespread price declines, especially in Brisbane and to a lesser degree Melbourne.

House prices, in comparison, were expected to outperform.

However, that didn’t happen.

According to data released by CoreLogic this week, capital city unit prices rose by 5.1% last year on a weighted basis, topping a 4% increase in house prices over the same period.

As seen in the excellent chart below from Pete Wargent, co-founder and CEO of AllenWargent, posted on his blog, much of that was due to the Sydney housing market — the largest in the country — where apartment prices rose by 5.4% in 2017, far outpacing a 2.1% increase in house prices.

Source: http://petewargent.blogspot.com.au

And while unit prices in Brisbane fell by 1.2%, those in Melbourne defied the doomsday predictions, jumping by an impressive 8.4%, all but ensuring apartment prices outperformed houses during the calendar year given the sheer size of the Sydney and Melbourne markets.

In other markets, unit prices rose by 9.1% in Hobart, making it the top performer of any capital city during the year. Elsewhere prices rose by 0.5% and 2.1% respectively in Adelaide and Canberra.

Perth and Darwin, along with Brisbane, were the only markets to experience falls, losing 0.9% and 8.8% respectively.

For houses, Hobart also topped the list for the fastest increase in prices at 12.9%, edging out Melbourne where prices rose by 9.1%.

Gains of 3.1%, 3.3% and 5.8% were recorded in Brisbane, Adelaide and Canberra while those in Perth and Darwin fell by 2.6% and 5.3% respectively.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.