House values stabilising: Residex

Previously softening housing values appear to be stabilising despite falling mortgage approvals, according to property analyst Residex.

Its latest data for March shows growth across the major cities ranged from -0.15 per cent in Sydney, to 0.31 per cent in Melbourne, 3.82 per cent in Perth and 3.81 per cent in Brisbane.

Managing director John Edwards said the property market “appears to be in a holding pattern following the initial house price shock in February, following successive interest rate rises”.

“March data suggest a more confident, if still somewhat cautious mood has returned to the housing market, because purchasers who are equity rich, wealthy or property investors are largely unaffected by rate rises.

“Having dodged the bullets, they march on regardless, (while) those hurt the most by successive rate rises take the hits and are left behind,” he said.

The data also shows significant declines in quarterly sales volumes in the March quarter, in line with the latest ABS figures on mortgage approvals,

Volumes have fallen by as much as 18.8 per cent in Sydney, 24 per cent in Brisbane, and 3 per cent in Perth and Melbourne. Hobart was the only city to record a rise in sales volumes.

The data also reveals apartments are outperforming houses in the major cities with apartments growing by 7 per cent in Perth, 2.9 per cent in Melbourne, 7.3 per cent in Brisbane and 0.33 per cent in Sydney.

It also showed substantial growth in the major cities’ rental markets, ranging from 4.08 per cent in Perth to as high as 6.05 per cent in Canberra.