Sydney and Melbourne have long been the star performers in Aussie property, and even though both have seen a degree of slowing in their rate of price growth in recent times, the pace of increases still outpaces all other cities in the nation.
According to the October CoreLogic RP Data index, the price of properties in Australia now sits at some 0.2 per cent higher than it did at the end of September. Both Sydney and Melbourne, however, have seen faster increases than this average.
Prices increased by 0.3 per cent in Sydney in October, but it was Melbourne that once again surprised most experts by seeing faster increases than the red hot city. In Melbourne, prices were up by 0.6 per cent month on month.
On a quarterly basis, the average price in the country now sits at 1.4 per cent higher than it did at the end of June quarter. Prices are also up on an annual basis by an average of 10.1 per cent. While high, this yearly figure is still lower than the 11.1 per cent increase in evidence one year ago, perhaps showing a maturing in the market.
According to CoreLogic RP Data’s head of research, Tim Lawless, a range of factors are contributing to the slight slowdown we are now seeing in the Aussie property market.
"It’s not just the fact that mortgage rates have recently risen outside of any lift in the cash rate. We are also seeing approximately a 30 per cent premium on investment related mortgage rates, tighter lending standards and borrowers generally requiring a larger deposit," he added.
"Gross rental yields at record lows and affordability constraints are acting as a further disincentive, particularly in Sydney where the median unit price is equal to, or higher than the median house price in every other capital city."
Mr Lawless also said there is now a far improved level of housing stock coming to market, which has helped to allow an easing in growth of the price of homes.