Property Market Information: Australian property values soar

By the resi financial blog team, 19 February 2015

Property Market Information: Australian property values soar

If you're deciding when to refinance your investment property, one of the key considerations is price growth in the market. Price trends can be the difference between losing money on your investment or successfully expanding your portfolio. Blooming prices are likely to benefit those who already own an investment property, while they could be a barrier to households wanting to swap renting for home buying.  

Recent figures from CoreLogic RP Data show that, incredibly, 95.4 per cent of house sales were below $400,000 20 years ago. 3 per cent of sales were between $400,000 and $600,000, while 1.2 per cent fell into the $600,000 and $1 million bracket. Properties that sold for more than $1 million were few and far between, with only 0.4 per cent of total sales exceeding this value. 

By today's standards, these figures seem almost inconceivable. By 2014, just 22.2 per cent of house were sold for less than $400,000. House sales between $400,000 and $600,000 accounted for 33.4 per cent, while 28.1 per cent sold for $600,000 to $1 million. The real indicator of the property market's trajectory is in the $1 million bracket - a staggering 16.2 per cent of house sales flew past the million mark last year. 

The report said these figures highlight that more and more Australians are channeling their wealth into residential property investment.

"Although the combined capital city data provides an overview of the trends, when you drill down into the individual capital cities you can see some very different trends," it said.

"Looking at the individual capital cities and across the price brackets, there is a divergence in the price point with the most sales over the year."

Unsurprisingly, Sydney is home to the most property millionaires in the country. According to CoreLogic, the city recorded the highest proportion of house sales between $1 million and $2 million in 2014 with just over 30 per cent of properties selling for this eye-watering total. Melbourne, by comparison, recorded 15.7 per cent of $1 million plus sales, while Perth and Brisbane trailed behind at 10.7 per cent and 5.5 per cent respectively. 

If you're looking to finance an investment property, contact a loan specialist at resi today. 

Categories: Property Investment