Melbourne leads the way
23 Sep 09
Melbourne leads the way
Melbourne properties staged a stunning performance during the first seven months of the year with median prices jumping by a whopping 8.5% to $454,524 according to RP Data-Rismark International's Home Value Index.
Sydney properties also grew solidly, albeit slower compared to Melbourne. Median price climbed by 6.64% during the same period.
"Melbourne's median value is 19% or $112,000 lower than Sydney house values, reflecting a significant value differential. This maybe one of the reasons why Melbourne's housing performance has been so strong," the report said.
Darwin continued to outperform the rest of Australia, racking up 10.8% growth in value over the first seven months of 2009. Darwin also recorded the highest gross rental yield - 6.4% for houses and 6.2% for units - followed by Canberra, with houses up by 4.9% and units by 5.6%.
Sydney's house prices remain the highest of the capital cities, averaging $537,396, while Perth ranked second at $481,493 and Canberra third, at $477,627.
The weakest performing house prices were found in Adelaide with values up only 1.9% in 2009. Melbourne recorded the lowest house rental yields at 4.1% and matched Perth's 4.6% increase in unit yields.
John McCormack, Starr Partners CEO observed “There is some good news here and it is definitely reflected in the sales results our offices are reporting”. "Sydney in the last quarter has provided more growth than was achieved in the last two years. If we annualise the growth, for example, in Sydney for the last quarter then we have an outcome of 28.9%." he said.
However, some economists are warning that the speedy recovery presents risks to investors. Too much confidence and over leveraging presents some real issues for Government and the community as a whole. McCormack commented “Confidence has been growing steadily over the last six months and we have no reason to expect it to falter”