Capital city median value growth increased during 2013

By the resi financial blog team, 03 February 2014

Median property value growth up in capitals

The latest Australian Property Monitors (APM) report has recorded an overall increase in the median value of capital city property - a trend that is expected to continue well into the new year.

This could provide a great opportunity for those interested in taking out an investment loan in the near future.

Building a property portfolio - especially in Australia's fast developing capital cities - is a great way to supplement your wealth and secure a side income, which can then be put towards providing the ultimate future for you and your family.

During 2013, there was a national increase in the median value of Australian capital city property, which grew a huge 9 per cent over the last 12 months. This solid effort was encouraged by increasing buyer demand throughout the nation's capital cities, as well as the historically low official cash rate causing interest rates to drop.

APM Senior Economist Andrew Wilson said in the report that the low interest rates were a great encouragement for home buyers, alongside developing local factors.

"Local economic conditions will continue to be a key driver of prices growth, with those export-focused resource economies likely to perform best within a lower and falling dollar environment," wrote Mr Wilson in the January 2014 report.

Specifically, it was Sydney that was a key component of the nation's overall market development.

With an annual median price growth reaching as high as 20 per cent across some of the regions, the New South Wales capital saw a huge increase in the number of investors entering the market. This market is expecting to see between 5 and 7 per cent more growth over the course of 2014.

This could provide a great incentive to enter the investment market in the coming months, especially with the projected population increase resting on the nation's horizon.

Categories: Home Loans, Property Investment