Australian home prices rebound to record highs in Jan: CoreLogic

[SYDNEY] Australian home prices reached an all-time high in January as four straight months of gains cleared the previous peak in 2017 led by outsized gains in regional markets as stay-at-home workers flee the cities.

The startling recovery from the Covid-19-led crunch of early last year has provided a much-needed windfall to consumer wealth and confidence, with the country's housing stock already valued at A$7.2 trillion (S$7.29 trillion) by September.

Data from property consultant CoreLogic out on Monday showed national home prices rose 0.9 per cent in January, from December when they added 1.0 per cent. Values were up 3.0 per cent on the previous January.

Prices across the major capitals rose 0.7 per cent in January from the previous month, to be up 1.7 per cent on the year.

Yet the regional market surged 1.6 per cent in the month and 7.9 per cent for the year as city dwellers smarting from coronavirus lockdowns sought more living space and houses with gardens.

Sydney and Melbourne managed modest gains of 0.4 per cent for January, while Brisbane and Adelaide added 0.9 per cent. Perth and Hobart gained 1.6 per cent and Darwin a steamy 2.3 per cent.

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"Housing values have surpassed pre-Covid levels by 1.0 per cent, and the index is 0.7 per cent higher than the previous September 2017 peak,"said CoreLogic's head of research, Tim Lawless.

"Internal migration data shows more people are leaving Sydney and Melbourne for regional areas," he added.

This demographic trend was compounded by the demand shock of stalled overseas migration which was hitting the major cities harder, he said.

All of which was boosting demand for houses over apartments, with house values up 3.5 per cent over the past six months while unit values were unchanged.

REUTERS