New figures have revealed that only one capital city has seen property values double in price over the past decade.
CoreLogic RP Data’s Property Pulse has revealed that in the 10 years to January 2016, Melbourne saw the biggest rise in home values of all the capital cities, with a cumulative increase of 100.9 per cent.
This was followed by Sydney (78 per cent), Darwin (75.3 per cent), Canberra (48.1 per cent), Perth (44.7 per cent), Brisbane (44 per cent), Adelaide (41.7 per cent) and Hobart (17.1 per cent).
The report showed that combined capital city home values increased by 72 per cent across the country, in stark contrast to the previous decade where values increased by 159.6 per cent.
“While there was a time when home values doubled over a 10-year period, the data suggests that the days of such rapid value rises are behind us,” Cameron Kusher, CoreLogic RP Data’s senior analyst, said.
“It’s important to remember that in recent times we have had record-low mortgage rates, yet that has failed to spark any substantial home value growth outside of Sydney and Melbourne.”
Mr Kusher noted that with little wage growth and economic uncertainty, it is clear there are limits to what people can pay for housing in most areas of Australia.
“Subsequently, there has been little impetus for any significant value growth outside of the two largest capital cities. Even in Sydney and Melbourne, value growth has been substantially lower over the past decade than over the previous decade,” he said.
[Related: Australia’s most expensive suburbs revealed]