House prices up 1.4 per cent across capitals

House prices up 1.4 per cent across capitals

Posted on Thursday, September 13 2012 at 1:14 PM

Median house prices have climbed 1.4 per cent across the nation’s capitals for the June quarter, according to the Bendigo Bank/REIA Real Estate Market Facts report.

The report, prepared by the Real Estate Institute of Australia,
demonstrates that solid returns can still be found in the capitals and regional
centres, says Bendigo and Adelaide Bank retail executive Dennis Bice.

Also detailed in the report is
the surge in first homebuyer mortgages across the nation, increasing by 5.9 per
cent to 25,101 over the June quarter this year, up from the June quarter of
2011 by 11.8 per cent.

“People have been putting the big decisions, such as upsizing or
downsizing their housing preferences on hold for some time now but there is
evidence to suggest that activity in the property market is beginning to build
again,” says Bice.

“Investors are also seeing strong demand for rentals in the major
centres with tight vacancy rates.”

The positive impact these tight
vacancy rates have on rental returns, coupled with lower borrowing costs,
should stimulate the spring real estate season, says Bice.

“The report also finds that around Australia, residential investment
property returns for three-bedroom houses and two-bedroom ‘other dwellings’,
such as apartments and townhouses, show an average annual return over the
past five and 10-year periods in the range of 6.6 per cent to 16.2 per cent.”

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