Sydney and Melbourne house values have lifted on the back of interest rate cuts, looser lending standards and the Morrison government's income tax cuts, but most of the increase is going into top end properties.
Despite the increases, Sydney house values were still down by 0.2 per cent in the quarter and by 9.8 per cent over the past 12 months. In Melbourne, values are off by 0.3 per cent over the quarter by 10.7 per cent over the year. "The stabilisation in housing values is becoming more broadly based with five of the eight capital cities recording a subtle rise in values over the month," he said.
"With borrowing capacities recently increasing as a result of lower mortgage rates, and a reduced serviceability floor, existing owners may increasingly be looking to upgrade into more expensive homes," he said.