Six out of Australia’s eight capital cities saw residential property market prices grow in September, the latest CoreLogic home value index reveals.

Darwin prices grew by 1.6%, Adelaide by 0.8%, 0.5% in Brisbane, and 0.2% in both Perth and Canberra.

Melbourne and Sydney were the two exceptions.

These price gains are being attributed to a recovery in market sentiment – it’s probably not a coincidence that the only two cities that dropped in value are also the two cities with the highest number of COVID-19 cases.

Tim Lawless said that the growth in the smaller capitals is because these cities have kept a lid on cases, so consumer sentiment is still high, but buyers are able to take advantage of ultra-low interest rates and economic stimulus packages, which are nationwide.

While Sydney is still declining, it is worth nothing that the rate of decline has slowed over the last several months, so we can reasonably expect to see recovery before the end of this year, assuming the virus situation is kept under control.

Melbourne may take longer to recover, but the easing of restrictions will also allow listings and inspections to begin again. Melbourne is the biggest auction market in the nation, so once the restrictions on auctions lift, we can expect Melbourne property prices to make their recovery.