There was a trend reversal between shares vs. property last month, with home values growing faster than ASX shares in October.
However, it is clear that the heat is coming out of the property market.
While the national home value rose for the 21st consecutive month, it only increased by 0.3%, according to CoreLogic data. And the Sydney median home price fell for the first time since January 2023.
Meantime, the S&P/ASX 200 Index (ASX: XJO) lost 1.33% in October.
Image source: Getty Images
Shares vs. property price performance in October
The property market remains two-tiered, with the mid-sized capitals of Perth, Adelaide, and Brisbane continuing their phenomenal run, albeit at a slower pace.
Perth, Adelaide and Brisbane recorded solid median home price gains of 1.4%, 1.1% and 0.7% in October.
Hobart home values also increased 0.8%, which is a strong result and the first monthly gain since June.
Meantime, home values declined by 0.1% in Sydney, 0.2% in Melbourne, 1% in Darwin and 0.3% in Canberra.
Tim Lawless, CoreLogic's research director, said there was an almost uniform trend across the cities of prices rising at the lower end and softening at the upper end.
This is due to affordability constraints, as well as a higher share of investors and first home buyers in the market. These buyers tend to target lower-priced properties, such as apartments.
Lawless said:
A combination of less borrowing capacity and broader affordability challenges, as well as a higher-than-average share of investors and first home buyers in the market is the most likely explanation for stronger conditions across the lower value cohorts of the market.
The past three months has seen the lowest quartile either record a higher growth rate or smaller decline relative to the upper quartile or broad middle of the market across every capital city except Canberra.
New figures released by the Australian Bureau of Statistics today show that the value of new investor loans rose 29.5% over the 12 months ending 30 September, while owner-occupier loans rose by 13.1%.
The value of first home buyer loans increased by 8.8% year-over-year.
There are more homes for sale during the Spring season, which is evening-up supply and demand. This is contributing to slower price rises in the strongest markets and price falls in the weaker markets.
In addition, CoreLogic said the number of sales "looks to be fading", which is keeping supply higher.
Let's take a look at the numbers.
Shares vs. property: Here are the numbers for October
| Property market | Median house price | Price growth last month | 12-month price growth |
| Sydney | $1,478,925 | -0.1% | 3.9% |
| Melbourne | $928,808 | -0.2% | -1.8% |
| Brisbane | $974,025 | 0.7% | 11.9% |
| Adelaide | $864,487 | 1% | 14.5% |
| Perth | $838,547 | 1.3% | 22.4% |
| Hobart | $690,003 | 1.2% | -1.9% |
| Darwin | $585,912 | -1% | 1% |
| Canberra | $976,911 | -0.1% | 1.5% |
| Regional New South Wales | $766,744 | 0.4% | 3.1% |
| Regional Victoria | $594,649 | -0.2% | -2.2% |
| Regional Queensland | $678,491 | 0.8% | 11.3% |
| Regional South Australia | $451,887 | 1.3% | 11.5% |
| Regional Western Australia | $555,973 | 1.4% | 18.2% |
| Regional Tasmania | $535,921 | 0.8% | 1.4% |
| Regional Northern Territory | $429,310 | -1% | -5.9% |
Top 5 risers of the ASX 200 last month
The ASX 200 fell 1.33% in October. Meantime, these 5 ASX 200 shares were the highest gainers.
| ASX 200 share | Share price growth |
| Arcadium Lithium CDI (ASX: LTM) | 89.1% |
| Sigma Healthcare Ltd (ASX: SIG) | 36.1% |
| Regis Resources Ltd (ASX: RRL) | 32.8% |
| Insignia Financial Ltd (ASX: IFL) | 25.9% |
| HMC Capital Ltd (ASX: HMC) | 24% |
Why did the Arcadium Lithium share price skyrocket 89%?
The Arcadium Lithium share price juggernaut was driven by news that mining giant Rio Tinto Ltd (ASX: RIO) will take over the company via an all-cash transaction of US$5.85 per share (A$8.71 per share).
The Arcadium Lithium share price is currently $8.15, down 0.97% for the day.
On the day before Rio confirmed it had approached Arcadium, the ASX lithium stock closed at $4.18 per share.
Rio confirmed the approach on 7 October and the Arcadium Lithium share price rocketed 46% higher.
Rio then announced a deal on 9 October, after the market closed. On 10 October, Arcadium shares ripped 39% higher.
Rio Tinto's CEO, Jakob Stausholm, said:
Acquiring Arcadium Lithium is a significant step forward in Rio Tinto's long-term strategy, creating a world-class lithium business alongside our leading aluminium and copper operations to supply materials needed for the energy transition.
