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ISCOVER
Staff Reporter
The Australian property market is bouncing back to life, with new data revealing a lift in dwelling values across most of Australia’s capital cities.
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According to the latest RP Data-Rismark Hedonic Home Value Index, dwelling values across the combined capital cities of Australia recorded a 2.8 per cent rise over the March quarter, taking the cumulative capital gain to 4.7 per cent since the market bottomed out in May last year.
In March alone, dwelling values posted a solid rise, increasing by 1.3 percent across the combined capital city index.
The positive conditions were broad based, with every capital city recording a rise, apart from Adelaide where the market remained steady over the month.
RP Data’s research director Tim Lawless said Perth recorded the highest level of growth over the month with dwelling values surging 3.4 per cent.
Hobart and Darwin also recorded a large lift in dwelling values, rising 2.5 per cent and 2.4 per cent respectively over the month.
“Since the capital city housing market bottomed out at the end of May last year we have seen dwelling values rise by 4.7 per cent after falling by 7.4 per cent from their market peak back in late 2010. The most significant recoveries have been recorded across Darwin where values have risen 13.9 per cent since bottoming out in January last year, and Perth where values are up 9.4 per cent since the market trough in November 2011,” Mr Lawless said.
“Both these cities are recording rental growth higher than 10 per cent year on year which is providing a significantly higher total return compared with other cities. The RP Data-Rismark Accumulation Index, which factors in the gross yield as well as capital gains, is showing a total year on year gross return in Darwin of 13.9 percent and Perth is recording a total gross return of 10.6 per cent, both significantly higher than the combined capitals average of 6.9 per cent gross.”
Across the broad price segments, it looks as if the middle priced housing sector is continuing to show the healthiest market fundamentals. Based on the RP Data-Rismark Stratified Hedonic Index, dwelling values across the middle 60 per cent of the housing market have increased by 1.6 per cent over the year to February, compared with a 0.9 per cent fall in dwelling values at the most affordable end of the housing market, and a 0.6 per cent fall at the most expensive end of the pricing spectrum.
