Home values across Australia to diverge into 2019, based on the Corelogic-Moody’s Analytics Australian Home Value Index Forecast
NEWS | For Immediate Release
House values in Sydney and some parts of Melbourne are expected to decline while values in Adelaide, Brisbane, Canberra, and Hobart are expected to see further growth. Values in Perth remain mixed, although some recovery is at hand in certain markets.
SYDNEY, June 20, 2018 – House prices are expected to significantly diverge across Australia through the remainder of the decade, according to the CoreLogic-Moody’s Analytics Australian Home Value Index Forecast. Prices in Sydney and some parts of Melbourne will weaken, while prices in much of the rest of Australia, including Adelaide, Brisbane, Canberra, and Hobart will continue to grow, albeit at a slower pace.
Moody’s Analytics, a leading financial intelligence firm, and property data and analytics company, CoreLogic, closely track and provide forward-looking insights on Australia’s housing market. The CoreLogic-Moody’s Analytics Australian Home Value Index Forecast is updated monthly and provides projections of residential home values across the country over the next 10 years with a quarterly periodicity.
Forecasts for detached house values have been created for 85 distinct areas across capital cities and the rest of state markets. Forecasts for apartments have been created for 46 areas, covering markets across all eight capital cities. Forecasts are updated monthly to help market participants and consumers identify market opportunities and manage risk exposures.
“Dwelling values in Australia are seeing slower growth or outright decline as a result of past value increases, which have exceeded income and rental growth, past supply increases, and actual or expected increases in borrowing costs,” said Alaistair Chan, Housing Economist with Moody’s Analytics.
“That said, the worst is over, as less housing supply and Australia’s strengthening economy will support income and rental growth, and thus dwelling values, beginning next year,” added Mr. Chan.
CoreLogic research director Tim Lawless said, “While most recent housing market downturns have been driven by external shocks or higher interest rates, the current downturn is being driven by tighter lending policies, particularly for investors, which are impacting the most expensive and most investor-centric housing markets.”
“Sydney and Melbourne have grabbed the headlines for their falls, but what is less noticed is the deceleration of value growth in Brisbane, Adelaide and Canberra,” continued Mr. Lawless.
Click here for more information about the CoreLogic-Moody’s Analytics Australian Home Value Index Forecast, including the forecast methodology.
About Moody’s Analytics
Moody’s Analytics provides financial intelligence and analytical tools supporting our clients’ growth, efficiency, and risk management objectives. The combination of our unparalleled expertise in risk, expansive information resources, and innovative application of technology, helps today’s business leaders confidently navigate an evolving marketplace. We are recognized for our industry-leading solutions, comprising research, data, software, and professional services, assembled to deliver a seamless customer experience. Thousands of organizations worldwide have made us their trusted partner because of our uncompromising commitment to quality, client service, and integrity.
Moody's Analytics is a subsidiary of Moody's Corporation (NYSE: MCO). MCO reported revenue of $4.2 billion in 2017, employs approximately 11,900 people worldwide and maintains a presence in 41 countries. Further information about Moody’s Analytics is available at www.moodysanalytics.com.
About CoreLogic
CoreLogic is a wholly owned subsidiary of CoreLogic (NYSE: CLGX), and is the largest property data and analytics company in the world. CoreLogic provides property information, analytics and services across Australia and New Zealand and is currently developing and growing partnerships throughout Asia. With Australia’s most comprehensive property databases, the company’s combined data offering is derived from public, contributory and proprietary sources and includes over 500 million decision points spanning over three decades of collection, providing detailed coverage of property and other encumbrances such as tenancy, location, hazard risk and related performance information. With over 11,000 customers and 120,000 end users, CoreLogic is the leading provider of property data, analytics and related services to consumers, investors, real estate, mortgage, finance, banking, insurance, developers, wealth management and government. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and geo spatial services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. CoreLogic employs over 600 people at nine locations across Australia and in New Zealand. For more information call 1300 734 318 or visit www.corelogic.com.au.
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