Neither the impending election nor speculation about tax changes could stop the housing market from rising further in May.
The average capital city home value rose 1.6 per cent in May, according to preliminary estimates on Monday from CoreLogic RP Data based on prices over the first 27 days of the month.
Ahead of the July 2 federal election, there has been a debate over the opposition’s policy of winding down the tax benefits of negatively geared investment properties, but prices have continued to rise nonetheless.
“It looks as if the upcoming election and debate around taxation policy hasn’t been enough to dampen the renewed bounce in home values,” CoreLogic head of research Tim Lawless said.
“The strong month-to-date reading is being driven by a substantial rise in Sydney home values where the CoreLogic index is up 3.4 per cent over the month to date,” he said.
And the proportion of homes sold after being put up for auction remains solid.
“The strong (price) index numbers are supported by high clearance rates recorded across the month, with Sydney and Melbourne both showing clearances holding above the 70 per cent mark through late April and May,” Mr LAwless said.
At the same time, the research firm released its latest weekly roundup of prices in the mainland state capitals, which showed signs of the lull typically affecting the market in late May and early June.
After rising only 0.1 per cent the previous week, the average for the five capitals was unchanged in the week ending Sunday and 9.8 per cent up from the corresponding week of 2015.
Prices rose by 0.3 per cent in Sydney last week, to be up by 12.7 per cent from a year ago, while the Perth market posted a weekly gain of 0.1 per cent to be down 3.8 per cent through the year.
In Melbourne, prices were unchanged in the week but up by 12.8 per cent for the year.
Prices were down by 0.2 per cent in Brisbane/Gold Coast in the week but up 7.2 per cent over the year, while the Adelaide market retreated by 0.3 per cent in the week to be 5.0 per cent up from this time last year.