Housing markets on the rise
April 11th, 2014
The Australian housing market has climbed to record highs in recent months, with predications certain the growth will continue.
After 10 months of rising, new figures released by RP Data confirms capital city home values continue to charge ahead, with figures up 10.6 percent from last March. Sydney and Melbourne homes are rocking the biggest gains with a respective 15.6 and 11.6 percent rise in the last year.
For other capitals, the increase was slightly less significant. Values in Brisbane rose 4.8 percent, 4.7 percent in Perth, Adelaide 4.6 percent, Darwin 3.8 percent, Canberra 1.7 percent and Hobart 0.9 percent.
In relation to previous market peaks, home value figures are 7.2 percent higher in comparison. Much of this growth has been carried through by the Sydney market, where home values are 15.8 percent higher than the last boom. Comparatively, Melbourne and Perth homes are up 4.7 and 2.6 percent on their last peaks respectively; while Brisbane, Darwin and Hobart are still down on their previous peaks.
Cameron Krusher of RP Data predicated there would be continued growth throughout the year, however expected the pace to slow throughout the second half of the year, particularly in Melbourne and Sydney.
“From an investors’ perspective the best opportunity to enter the Sydney, Melbourne or Perth markets has well and truly passed especially considering the strong value growth over the past year and now the falling rental yields,” Kusher says.
He said, compared to other cities, Brisbane has the most potential to maintain the rising capital growth trend throughout the second half of 2014.
“Our view is we will see a pick-up in the Brisbane housing market.’’
CBS Property Group