That’s the strongest annual growth rate across the combined capital cities since the 12 months ending June 2010, according to CoreLogic.
Interest rate cuts and investor demand are driving the growth, according to CoreLogic head of research Tim Lawless.
“At a combined capital city level, growth conditions have been rebounding since the middle of last year when, on two separate occasions, interest rates were cut, and investor demand commenced trending higher,” he said.
“Prior to capital gains accelerating half way through last year, the growth trend had been moderating, reaching a cyclical low point over the twelve months ended July 2016 when the annual change in capital city dwelling values slowed to 6.1 per cent.”
But it really is a tale of two cities: Sydney and Melbourne are driving the growth with year-on-year value increases of 18.4 per cent and 13.1 per cent respectively.
Brisbane is hanging in there with 2.2 per cent, while Darwin (-5.3 per cent) and Perth (-4.5 per cent) have seen declines.
All up the CoreLogic results take the current housing growth cycle into its 58 month. Let’s see how long the growth spurt continues.
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