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80.0100.0120.0140.0160.0180.0200.0
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Sydney value growth 2001-04 vs. current growth
2
Is this a house price boom? Time to recap on 2001, 2004 & today Although Sydney and Melbourne home values are recording strong levels of capital growth currently, the
rate of growth is much slower than that recorded between the ‘boom’ period of 2001 and 2004.
When considering the current surge in Sydney and Melbourne
home values, it is worthwhile revisiting how strong conditions
were during the housing boom of 2001 through to 2004.
Although the rate of capital growth in Sydney and to a lesser
degree Melbourne is strong it is nowhere near as strong as the
rapid home value growth recorded between 2001 and 2004.
At the beginning of 2001 the rate of growth in home values began
to accelerate. The pick-up in value growth began in Sydney and
Melbourne and then flowed through to the other capital cities. A
major difference between the post-2000 growth phase and the
current growth phase is that the post-2000 phase was not
preceded by falls in home values. Another major difference is of
course that the growth post-2000 was broad-based whereas the
current growth in home values has been narrow, largely focussed
on Sydney and Melbourne. Finally household debt levels were
substantially lower in 2001 than they are now, which is likely
another major contributor to the stronger increase in home values
then compared to now.
The previous growth phase is widely accepted to have
commenced at the end of 2000 however, the commencement of
the current rises in values has varied across each city.
Sydney – home values began rising from May-12 and have
increased by 38.8%, over the same period post-2000 they had
risen by 60.2%.
Melbourne – home values began rising from May-12 and have
increased by 23.6% compared to 58.0% over the same period
post-2000.
Brisbane – home values reached a low point in May-12 and have
since increased by 10.9%, in comparison home values had
increased by 91.5% over the same timeframe post-2000.
Adelaide – home values reached a recent low point in Mar-12
and have since increased 7.0%, in the post-2000 growth phase
values had increased by 74.6% over the same timeframe.
Perth – home values started rising from Oct-11 and have risen by
14.5% to Apr-14, over the same timeframe post-2000 home
values had increased by 55.4%.
Hobart – home values reached a low point in Nov-13 and have
increased by 8.9% compared to a 16.7% increase over the same
timeframe after 2000.
Darwin – home values hit a low point in Jan-12 and have since
risen by 17.3%, over the same timeframe post-2000 home values
in the city rose 22.1%.
Canberra – Home values have been rising since the end of Jan-
12 and have increased by 8.5% compared to 96.3% over the
same timeframe post-2000.
The data shows that Sydney and Melbourne are the stand-out
cities for capital growth currently. More importantly, the rate of
capital growth over recent years across each capital city is
significantly lower than over the same timeframe from 2001
onwards. In fact, Hobart and Darwin are the only capital cities in
which the post-2000 level of capital growth is even close to the
current level of capital growth.
CoreLogic RP Data Property Pulse
Monday 01 June, 2015
DISCLAIMER
In compiling this publication, CoreLogic has relied upon information supplied by a number of external sources and CoreLogic does not warrant its accuracy or
completeness. To the full extent allowed by law CoreLogic excludes all liability for any loss or damage suffered by any person or body corporate arising from or in
connection with the supply or use of any part of the information in this publication. CoreLogic recommends that individuals undertake their own research and seek
independent financial advice before making any decisions. © 2014 CoreLogic.
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Melbourne value growth 2001-04 vs. current growth
Brisbane value growth 2001-04 vs. current growth
Adelaide value growth 2001-04 vs. current growth
Perth value growth 2001-04 vs. current growth
Hobart value growth 2001-04 vs. current growth
Darwin value growth 2001-04 vs. current growth
Canberra value growth 2001-04 vs. current growth
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