House prices defy predictions in 2016 by rising more than 15pc

The Australian Financial Review (AFR)

Home prices defied forecasts they would stagnate in 2016 to grow more than they did during the “boom” year of 2015, according to year-end figures from property research firm CoreLogic. Dwelling prices rose 15.46 per cent in Sydney while Melbourne had a rise of 13.68 per cent. Even the much-maligned Hobart and Canberra housing markets posted strong gains, rising 11.24 per cent and 9.29 per cent respectively. The data disappointed economists hoping for a more subdued housing market in 2016. At the end of 2015, Sydney and Melbourne closed with 11.5 per cent and 11.2 per cent growth respectively across houses and units, according to CoreLogic. The Brisbane-based group, which expanded into Sydney in 2016 to capitalise on the city’s strong growth, won’t be moving into Hobart yet. There needs to be a steady pattern of strong price growth in Hobart to justify starting new projects, Mr Leahy added. Similar to Metro, NSW newcomer developer Villa World has no plans to build in Hobart. “It’s quite a low-volume market,” chief executive Craig Treasure said. The low volume, however, is mainly due to a lack of buyer awareness, Chinese property marketer ACProperty director Esther Yong said. “There has been little education about Tasmania for Chinese buyers, but it is getting more popular now. Buyers won’t think about Tasmania because it is not a big city and no one talks to them about it.”