Canberra home values fall in June

Canberra home values slipped during the past month in line with most capital city markets, according to a new report which also warned consumer sentiment could drop following the Brexit vote. 

However, the CoreLogic June Home Value Index’s quarterly figures showed that home values are still ahead of where they were three months ago.

According to the report, Canberra home values fell 1.1 per cent in June. Sydney, Melbourne and Hobart were the only capital cities to record a monthly rise.

CoreLogic Asia Pacific research director Tim Lawless said the two largest cities pushed the combined capital city result to a 0.5 per cent rise, however most cities recorded a drop in home values.

“The combined capitals’ headline result was driven by a strong 1.2 per cent rise in Sydney dwelling values, and a 0.8 per cent gain across Melbourne’s housing market,” Mr Lawless said.

“Hobart values also showed strong conditions with dwelling values moving 1.8 per cent higher over the month.”

Sydney, Hobart and Melbourne also recorded the strongest results for the first half of the year, with capital gains of 8.9, 8.5 and 5.8 per cent, respectively.

Canberra’s year-to-date result placed fourth among the capital cities, recording growth of 4.4 per cent in the past six months.

The only two capital cities to record a year-to-date reduction in dwelling values were Perth and Darwin.

Rental yields remain strong in the nation’s capital with houses and units recording a yield of 4 and 5.1 per cent respectively.

Only Hobart and Brisbane were narrowly ahead, with Hobart recording the highest yields of 4.2 per cent for houses and 5.2 per cent for units.

Yields for both houses and units in Melbourne and Sydney have dropped to record lows.

The report noted that consumer sentiment across the nation remained positive during June after surging in May.

“The June reading was 7.2% higher than a year ago, indicating consumers remain relatively optimistic,” Mr Lawless said.

“However with the recent Brexit vote and ensuing global uncertainty, confidence levels are likely to reduce over the coming months, which may impact on consumer willingness to enter into high commitment decisions like purchasing property.”