CoreLogic Hedonic Index

brand new apartments over 60%+ median is not rare. For example, in my suburb the median unit price is 860K and many new units are selling in $1.3-1.7M range.

However, if other (old) units have flat zero growth, I don't think it is correct to say that our suburb has a growth.

So I suspect many 'booming' suburbs are actually suburbs with high proportion of new houses/apartments. If we compare the prices for existing houses the growth is much less than reported.

 

Adelaide officially out-performing Sydney in annual growth as of today.

Sydney: 2.91%
Melbourne: 8.87%
Brisbane: 2.62%
Adelaide: 2.93%
Perth: -2.28%

 

That is very insightful of you...you will actually see the median drop in Melbourne as the demand is now mostly FHB...this means then they will be buying stock under 600k.

That also means the outer areas has another year or so before things cool.

Melbourne FHB are a conservative bunch...they typically want H+L land packages under $550k....even though they have house hold incomes of over $150k. Most even want stuff under $450k....

 

On a direct average of recent sales prices maybe, but on an indexed average house price calculation, no. Sales will be levelised by some form of postcode/residence type identifier, which means a house selling for 500k that was 400k a year ago will have a 20% increase on the part of the index in contributes to.

Another thing to consider is that even if a sale is below average, if it is 600k and would have been 500k a year ago, the average, even if it is above 600k, will still move up.

I would argue that a lot of the continued strength in melbourne while sydney has stalled recently has been the sub-750k sector boost with the fhog changes. Definitely seems to be where most of the action is, especially looking at auction sales

 

Hey mate, do you think all sub 600k suburbs will continue to grow steadily in 2018 or just the outer suburbs?

There are still some 500-550k suburbs, that don't fall in the category of outer suburbs, such as Albanvale, Deer Park and Kings Park. Would be interesting to hear your thoughts on this.

 

Yes they will as people have money to buy under 600k ...due to Vic govt subsidy.

 

Sydney year on year growth down to 0.05%, only 0.09 index points to fall and its neutral (which is what it fell by overnight). Any day now, Sydney will be showing a YoY loss in nominal terms. Peak was now 176 days ago, having fallen 3.8% since then.

All 5 cities showing a loss this month, all cities except Brisbane showing a YTD loss. Brisbane's gains are only 0.03%, currently 0.03 points. so it may be all 5 cities negative quite soon.

 

Sydney has pipped Perth as the weakest year-on-year market of the big 5 cities, with a loss of 2.35% vs. Perth's 2.30%.

CoreLogic Home Value Index - Daily Indices | CoreLogic

Some irony to the fact that a market drawing so much Asian money did this on the 4th day of the 4th month.