Property prices set to rebound

Property prices set to rebound

Posted on Tuesday, January 03 2012 at 5:25 PM

After much speculation in recent months over the interest rate cut effect on property prices, recent data proves it was certainly a gear changer in November 2011, with the greatest increases recorded since December 2010, according to RP Data-Rismark‘s November Hedonic Home Value Index results.

In November, the index reported that capital city home values rose by 0.1 per cent and regional dwelling prices climbed by 0.3 per cent in seasonally adjusted terms.

Rismark’s Christopher Joye said this positive result in November is a confidence boost for the first quarter of 2012, which is now projected to experience a price rebound particularly as new home loan approvals for established dwellings continue to rise since the downturn in March last year.

Over the 12 months to November 2011, the total return for investors in capital city property markets remained positive overall at 1.2 per cent, however significant diversity still remained across these housing markets, said RP Data senior research analyst Cameron Kusher.

“Although home values have fallen across each capital city, Sydney and Canberra have been the most resilient with dwelling values off just -0.5 per cent (seasonally adjusted) and -1.6 per cent (seasonally adjusted) over the year respectively,” said Kusher.

Over the three months to November 2011, Darwin and Canberra were the strongest capital city housing markets, with property values up by 0.3 per cent seasonally adjusted, reported the index.

Meanwhile Melbourne and Brisbane values were the weakest capital city markets in the same period, with values in both cities down by 1.7 per cent.

In gross rental yield terms across the capitals in the three months to November Darwin took the gong with 5.5 per cent for houses and six per cent for units, while Melbourne experienced the weakest gross rental yields of 3.7 per cent for houses and 4.3 per cent for units.


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