Australian house prices continue to rise

Australian house prices continue to rise

Posted on Thursday, January 02 2014 at 2:06 PM

The outlook for home values in 2014 is looking positive with last year’s figures showing a 9.8 per cent increase over the 12 months to December.

The RP Data-Rismark results show that across Australia’s capital cities
there was a 1.4 per cent rise in December and a 2.8 per cent rise in dwelling
values over the final quarter.

Cameron Kusher of RP Data says the results from the December Hedonic
Home Value Index show the fastest annual rate of value growth since August
2010, and the largest calendar year increase in values since 2009 when home
values were up by 13.7 per cent.

However, Kusher was quick to point out the increase was not overly
significant when considering the long-term data.

“Despite the strongest annual value growth since 2009,
the rate of growth was not that startling given the low interest rate
environment and the previous successive years in which home values fell,”
Kusher says.

“Although home values increased by 9.8 per cent in 2013 the growth follows
a 3.8 per cent annual fall in values in 2011 and a further 0.4 per cent annual
fall in 2012. Cumulatively, from peak to trough, capital city dwelling values
were down 7.7 per cent prior to this current growth cycle.”

According to Kusher, although value growth has been strong compared to
recent years, the current growth cycle has been somewhat muted.


Overview of figures:

Best performing capital city: Sydney +4.1 per cent

Weakest performing capital city: Canberra,  -1.3 per cent

Highest rental yields: Darwin houses with gross rental yield of six per
cent and Darwin Units at 6.2 per cent

Lowest rental yields: Melbourne houses with gross rental yield of 3.4
per cent and Melbourne units at 4.2 per cent

Most expensive city: Sydney with a median dwelling price of $655,250

affordable city: Hobart with a median dwelling price of $330,000

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