Australian capital city home values rise 1.3% in January

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Capital city home values rose by 1.3% in the first month of the year, a strong start for the housing market in 2015, according to CoreLogic RP Data Home Value Index results.

However, overall housing market performance varied between the capital cities.

The largest cities, which have more influence over the combined capital city index due to the high number of dwellings, continued to push higher.

Melbourne values were up 2.7% over the month and Sydney increased by 1.4%.

Source: CoreLogic RP Data

Hobart also had a strong month with values up 1.6%.

Three capital cities recorded a decline with Darwin down 1.3%, Adelaide a negative 1.2% and Perth weaker by 0.6%.

The quarterly change revealed a clearer picture for housing market conditions, with the combined capitals index recording a 1.9% cent over the three months ending January.

Tim Lawless, CoreLogic RP Data Head of Research, says having Hobart produce the strongest result over the past quarter at 4.4% is a unique occurrence.

He says:

“Generally, Hobart has recorded the lowest rate of capital gain since the onset of the GFC, however housing market conditions have been improving. Local economic conditions have been improving and Hobart homes are the most affordable of any capital city. Additionally the market is benefiting from the return of lifestyle buyers.

Sydney has also shown the highest aggregated capital growth of any capital city in the years after the GFC.

From January 2009 to January 2015, Sydney home values have increased by 57%, 13% of that in the last 12 months.

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