Property Market Update
By Chris White, Prosper Group
House prices across the country are on the rise and show no signs of slowing. Auction clearance rates are sitting above 70% and there is still high demand for limited properties. Also, the amount of overseas investors buying into the Australian property market has been increasing.
RP Data Rismark February Hedonic Home Value Index result show that property values in Australia's capital cities increased by 12.7% over the 12 months to end February 2010. In the 12 months to end February 2010, capital gains in regional markets have had a 7% growth in property value.
In the 3 months ending February 2010 Sydney property values increased by 3.8%, the median value now sits at $519,000. Brisbane property values have not had such a big increase with only 0.4% increase, the median value is $437,000.
According to Residex, Sydney houses prices have risen 15.14% over the 12 months to 31 March 2010 and unit prices have increased by 10.53%. The increase in Brisbane houses prices at 4.15% have been outperformed by units at 7.63% over the last 12 months.
The housing market has been definitely sustained by population growth of 2.1% p.a, this is one of the strongest in the developed world. While the government predicts the population will increase to 35million persons by 2050, Rismark's Christopher Joyce believes it is more likely to be closer to 40million persons, even taking into account lower net overseas migration.
With interest rates expected to rise by another 50 to 100 basis points this year, the impact is likely to be felt most in the mortgage belts of Australia with affluent areas likely to keep outperforming.
Prosper Group: phone 1300 664 373 or email firstname.lastname@example.org