Home prices have risen by nearly 50 per cent across Australia over the past decade, new data shows.
National home values rose by a combined 43.9 per cent between June 2008 and June 2018, according to analysis by property data firm CoreLogic.
The hike was largely driven by price booms in Australia’s two largest housing markets, Sydney and Melbourne.
Home values in Australia’s combined capital cities increased by 52.6 per cent over the decade, while the combined regional markets rose 16.6 per cent.
“The growth in house and unit values over the past decade has been characterised as very much slanted to strong growth in Sydney and Melbourne and weaker conditions elsewhere,” CoreLogic research analyst Cameron Kusher said.
Home values are unlikely to rise to the same extent over the next decade, Mr Kusher said, with Sydney and Melbourne’s housing markets cooling since their peak in September 2017.
Home values in Sydney dropped 4.5 per cent over the 2016-17 financial year, according to CoreLogic.
“With housing in a downturn in Sydney and Melbourne and affordability stretched, at this point it seems unlikely the returns of the past decade will be replicated over the next 10 years,” Mr Kusher said.
Sydney’s South West was the best performing region in Australia over the past 10 years, with house prices rising 112.9 per cent and unit prices up 98 per cent since June 2008.
A further five regions saw house values double over the past decade, they were: Parramatta in Sydney (107.4 per cent), Inner South West of Sydney (106.6 per cent), Outer South West of Sydney (103.3 per cent), South East of Melbourne (102.7 per cent) and the West region of Melbourne (102.3 per cent).
The northern outback of Western Australia saw the biggest decrease in home values, with house prices falling 38.3 per cent and unit prices down 73.3 per cent over the past 10 years.