EOFY feature: Real Estate Outperforms in 15/16
Well we made it: another financial year over, another huge year for local real estate. Not only did we see property buyers emerge in a number of new categories, we saw a considerable rise in lending. Here are some of the highlights of financial year 2015/16:
- After six months of declines, Sydney’s house prices rebounded 2.4 per cent over the June 16 quarter, according to Domain Group’s House Price Report for June. The median house price in Sydney jumped back up to $1,021,968, while apartment prices increased 0.6 per cent. Word from economists is that interest rates are set to be cut again in August, which will have an impact on first home buyers struggling to get a foothold.
- Regional areas outperformed the capitals in some parts of Australia. The greater Sydney region, Blue Mountains, Central Coast and Wollongong all experienced notable growth, Southport showed an upward swing and Mornington and Geelong when pitted against Melbourne.
- According to the Australian Bureau of Statistics, housing prices rose by 6 per cent nationally, year on year as at March 16. There is now talk of 2016 being the best year in recent history to sell, with housing prices set to rise by a further 3 per cent this year.
- Overall, financing and lending conditions improved in 2015. As we know, supply remains tight for housing, so inventory is moving quickly.
- Who could forget all the chat about negative gearing in the lead up to the federal election? If you believed the sound grabs, Labor's proposed changes to negative gearing and capital gains tax were set to simultaneously crash house prices and send rents through the roof. With the Coalition retaining the leadership, it seems change in that area is unlikely for now.