Dwelling Values rise 10.1% 2013-2014 Financial Year
Capital city dwelling values have shown a 1.4 per cet capital gain over the month of June 2014, with all cities apart from Adelaide and Darwin recording a rise in dwelling values.
According to RP Data research director Tim Lawless, the strong result has partially reversed last month’s 1.9 per cent fall and provides a – 0.2 per cent decline in dwelling values over the June quarter.
Over the 2013-2014 financial year the top performing cities for capital gains have been Sydney and Melbourne where dwelling values are up 15.4 per cent and 9.4 per cent respectively across each city.
Brisbane Housing Market
The Brisbane housing market, where conditions have generally remained relatively sedate, is now gathering some pace with dwelling values moving 7.0 per cent higher over the past twelve months, the third strongest result of any capital city.
The Worst Performing Property Markets
On the other hand, the index results show that the softest performances over the past year have been recorded in:
- Hobart (2.5 %)
- Canberra (2.9 %)
- Adelaide (2.9 %)
Over the current growth cycle, capital city dwelling values are up 15.5 per cent, with Sydney recording the most significant capital gain at 23.1 per cent growth
since the end of May 2012. Adelaide’s housing market recorded the least significant capital gain over the cycle to date, with dwelling values rising by 5.6 per cent.
According to RP Data’s Tim Lawless, the recent volatility in the month-to-month Index reading is likely to be a seasonal factor.
The last time we saw a negative quarterly movement in our combined capital city index was May last year. The recent reduction in capital gains is likely a correction from the strong market conditions reported over the first quarter of the year.
He continued: “Looking through the monthly movements, the trend in performance is much more important. It shows that the quarterly rate of growth peaked across the Australian housing market in August last year at 4.0 per cent. Since that time the rate of capital gain has generally trended towards a more sustainable level. The slowdown in dwelling value appreciation will be a welcome relief to policy makers and those seeking to buy into the housing market,” Mr Lawless said.