That’s a wrap: financial year 2015 in review
As another financial year draws to a close, we reflect on how property markets performed over the past 12 months. According to a report released by CoreLogic RP Data, housing markets across the combined capital cities rose almost 10 per cent over financial year 2015.
The report showed that the rate of capital gains rose 5.1 per cent in the second half of the year compared to 4.5 per cent in the first half, highlighting that the housing markets saw some momentum gained during 2015.
The RBA’s decision to cut the official cash rate twice in 2015 (February and May) can be attributed to the lift in these gains.
In a statement, Corelogic RP Data’s head of research, Tim Lawless noted that the rate cuts saw an instant buyer reaction across the Sydney and Melbourne housing markets where auction clearance rates surged.
He went on to say that Sydney and Melbourne homes are now selling in record time; 26 and 32 days respectively.
The 2015 financial year saw house values rise 10.4 per cent across the combined capital cities, compared to unit values at 5.6 per cent. Houses are showing a higher capital gain than units across each of the capital cities except Hobart and Darwin.
In Melbourne, detached housing outperformed units significantly, with house values rising 11.2 per cent over the financial year while apartment values saw an increase of only 2.4 per cent. Mr Lawless noted in his statement that this is likely due to higher supply levels for units compared with detached houses.
As we enter the new financial year, focus remains on the Sydney market and its affordability. Unsurprisingly, Sydney saw the highest increase in house values of 16.2 per cent in 2015 and since 2012, Sydney values have risen 43.1 per cent.
Interest rates are the lowest they’ve ever been so if you have clients who could benefit from speaking with a broker, I’d be happy to sit down with them and go through their options.