Housing prices rose further in January to surpass their previous 2017 peak, with regional property values growing at twice the pace of capital city markets.
The CoreLogic national home value index was up 0.9 per cent in January to stand one per cent higher than its pre-COVID level and 0.7 per cent higher than the previous September 2017 peak.
Prices in Perth jumped 1.6 per cent to be up 3.4 per cent for the 12 months to the end of January.
Every capital city recorded a rise over the month, ranging from a 2.3 per cent surge across Darwin to a relatively mild 0.4 per cent increase in Sydney and Melbourne.
But while capital city values were collectively 0.7 per cent higher, CoreLogic’s combined regions index was up 1.6 per cent over the month.
CoreLogic research director Tim Lawless said the divergence between metro and regional housing demand in NSW and Victoria was more substantial than in other States.
He said more people are leaving Sydney and Melbourne for regional areas and this trend was further compounded by the demand shock of stalled overseas migration.
“Better housing affordability, an opportunity for a lifestyle upgrade and lower density housing options are other factors that might be contributing to this trend, along with the new found popularity of remote working arrangements,” Mr Lawless said.
At the same time, housing values continue to outperform those of units.
At a national level, house values have risen by 3.5 per cent over the past six months while unit values have been unchanged.
“Demand for units has diminished through COVID-19 amid record low levels of investor participation and changing living preferences,” Mr Lawless said.
CORELOGIC HOME VALUE INDEX FOR JANUARY
- National — up 0.9 per cent in January (up 3 per cent annually)
- Sydney — up 0.4 per cent (up 2 per cent)
- Melbourne — up 0.4 per cent (down 2.1 per cent)
- Brisbane — up 0.9 per cent (up 4 per cent)
- Adelaide — up 0.9 per cent (up 6.5 per cent)
- Perth — up 1.6 per cent (up 3.4 per cent)
- Hobart — up 1.6 per cent (up 6.8 per cent)
- Darwin — up 2.3 per cent (up 11.4 per cent)
- Canberra — up 1.2 per cent (up 8.5 per cent)
- Combined capitals — up 0.7 per cent (up 1.7 per cent)
- Combined regional — up 1.6 per cent (up 7.9 per cent)