Melbourne median property prices fall behind Adelaide for first time
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The news: CoreLogic's Home Value Index increased 0.5% in August, with Brisbane, Perth and Adelaide leading the price rises. While Sydney has had low levels of price growth, there were declines in Melbourne, Canberra, Hobart and Darwin.
Melbourne's median dwelling price, which includes houses and units combined and so is skewed downwards in cities with a high proportion of units, fell below Adelaide's for the first time on record.
The numbers: The median dwelling value in Sydney increased 0.3% over the month to $1,180,463 while Melbourne’s fell 0.2% to $776,044. Brisbane home values were up 1.1% to $875,040, Adelaide surged 1.4% to $790,789 and Perth was up 2% to $785,250. Hobart, Darwin and Canberra had falls of 0.4%, 0.3% and 0.2%, respectively.
The context: Victoria's increased investment property taxes may be playing a role, but CoreLogic analysts are quick to point out that supply may be more critical. Its report notes that there have been more dwelling completions over the decade in the state than anywhere else.
What they said: "This is the first time that Perth’s median dwelling value has been higher than Melbourne’s since February 2015, when the city was just coming off the highs of an iron ore boom," CoreLogic head of research Eliza Owen said.
"It is also the first time in CoreLogic’s 40 year median dwelling value series that Adelaide has had a higher median than Melbourne," she said.
The source: CoreLogic Home Value Index
