Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Property price growth slumps in coastal areas

Staff Reporter 4 minute read

Staff Reporter

While Australia capital cities continue to record strong property price growth, it seems the coastal cities are not as lucky.

According to new research by RP Data, capital city property values increased by a total of 10.5 per cent over the year to June 2010.

Meanwhile, growth in the regional areas was a little more subdued, with property prices climbing 5.1 per cent over the year.

Advertisement
Advertisement

While for the past 10 years house prices in coastal markets have typically seen strong levels of growth, RP Data’s research director Cameron Kusher said that for the last 12 months, the performance has been much less impressive.

For houses over the 12 months to June 2010, the top performing coastal market is Busseltonin south-west WA which experienced an increase in median house prices of 15.0 per cent for the year.

In the majority of instances house prices within these regions have recorded annual growth of less than 10 per cent over the last year. The largest falls were found in key tourism and sea change markets such as Cairns which declined by 2.7 per cent.

“Nationally, rental growth has been minimal since the onset of the Global Financial Crisis and most of the coastal markets have reflected this. The majority of suburbs detailed have recorded growth in rents of less than 5 per cent over the year, with a number of regions having recorded declines in median rents,” Mr Kusher said.

Unit regional rental growth has also been limited over the last year with 18 of the 24 regions highlighted recording growth of less than 5 per cent for the year.

PROMOTED CONTENT


“With the strength of the Aussie dollar at the moment, holidaying in Australia has become much more expensive for our overseas visitors. On the flipside however, our strong exchange rate makes holidaying abroad significantly more appealing for Australians. “Unfortunately a flow-on effect from this is that slower tourism markets tend to lead to a lack of employment in coastal regions. This then makes it difficult for owners of investment properties as they are ultimately less likely to be able to find tenants,” Mr Kusher said.

Property price growth slumps in coastal areas
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

default

 

more from the adviser
Renee blethyn NextGen.Net appoints head of broker

NextGen.Net has appointed its inaugural national head of broker ...

BBS Summit 2021 ta Better Business Summit and Awards Sydney postponed

Due to the ongoing COVID-19 resurgence in Sydney, the NSW leg of ...

Andrew Moulds Darren Smith ta Lend adds FleetPartners to platform

Lend has integrated vehicle fleet leasing and fleet management pr...