Sydney dwelling values are growing more slowly that Melbourne's, signalling a nervous 2016 for Sydney real estate investors but also potential for prospective first-home buyers.
CoreLogic RP Data's Hedonic Home Value Index released on Monday found Melbourne's market grew 11 percent in the last 12 months while Sydney's growth was 10.5 percent.
Last week the Domain House Price Report for the December quarter showed Sydney's mean house price decreased 3.1 per cent, Melbourne's increased 1.8 percent.
Head of research Tim Lawless said all signs pointed to a strong investor market in Melbourne.
"The latest data reveals Sydney’s housing market is now playing second fiddle to Melbourne’s, at least in annual growth terms,” Lawless said in a statement.
“In fact, over the past six months, the performance gap between Sydney and Melbourne is stark.
"Sydney dwelling values have reduced by 0.6 per cent between July last year and the end of January 2016, compared with a 3.0 per cent rise across Melbourne dwelling values."
Lawless put the widening gap between the two cities down to market resilience.
“Melbourne’s housing market has been more resilient to slowing growth conditions which has propelled the annual growth rate to the highest of any capital city, with dwelling values 11 percent higher over the past twelve months," he said.
"Previously, during the height of the growth phase, there was a large separation between Sydney’s housing market, which was streaking ahead, and Melbourne’s, where the rate of capital gain was substantial but still well below the heights being recorded in Sydney."
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