The latest data from CoreLogic to December 2016 shows Perth apart, home prices rose significantly.
December 2016 saw capital city dwelling values rise by 1.4%, taking the annual capital gain for 2016 to 10.9% – the highest growth rate for a calendar year since 2009. Factoring in gross rental yields and capital gains, housing as an asset class, earned a total annual return of 14.7% based on the combined capital cities index results.
Across Australia’s capital cities, the annual change in dwelling values for 2016 ranged from -4.3% in Perth to 15.5% in Sydney, with Melbourne and Hobart also showing annual capital gains higher than 10%.
Whilst there may be issues with the basis of the index, this rise is so strong that it underscores the need to tighten macro prudential controls. The regulators have simply been too lax.
