Australian Property News
Home prices on the rise
Posted on Monday, August 31 2009 at 8:34 PM
Australian home prices have increased by nearly six per cent over the first seven months of this year.
A 0.9 per cent rise in values in July brought the total capital growth for the year to 5.9 per cent, according to the RP Data-Rismark Home Value Index.
As at the end of July Australian home values were sitting at 1.8 per cent more than their February 2008 peak.
RP Data national research director Tim Lawless says Australia's residential property market has outperformed the other major western markets and provided better returns than shares, commercial property, superannuation, hedge funds and private equities.
"Australia's residential market has been further supported by low mortgage default rates, at just 0.6 per cent, compared with five per cent in the US and three per cent in the UK."
"Every mainland capital city has experienced solid growth during the first seven months of the year."
Darwin was the best performing capital city, with homes increasing by 10.8 per cent to the end of July and Adelaide saw the lowest growth with values increasing by just 1.9 per cent.
Melbourne saw an 8.5 per cent increase in values, prices in Sydney climbed 6.6 per cent, Canberra prices increased by 5.4 per cent, Brisbane values grew by 3.8 per cent and Perth prices grew by 2.5 per cent.
Darwin also had the best returns for investors, recording a gross rental yield of 6.4 per cent for houses and 6.1 per cent for units.
Rismark International managing director Christopher Joye believes the housing market will continue to see modest gains in values over the next 12 months.
"Home values are now increasing steadily in all areas including Australia's most expensive suburbs," he says.
"This has eviscerated the popular myth that the recovery was being driven exclusively by first timers at the cheaper end of the market."
"While first-time buyers did initially furnish the early momentum, upgraders and investors have now taken over the baton as we anticipated."
"This is reflected in the superior performance of houses compared with units since the first quarter of 2009."
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