Capital property values grow over last 12 months

By the resi financial blog team, 06 January 2014

12 months of property growth in Australian capitals

With the new year kicking into gear, now could be the perfect time to consider your next real estate moves heading into the future.

The latest RP Data-Rismark Home Value Index has highlighted the strength of the real estate market at the end of 2013, which could be great news for those interested in expanding their investment portfolios.

Home values throughout the nation's capital cities increased by 9.8 per cent over the last 12 months, which is the largest annual increase Australia has seen since 2009, when the yearly value increase reached 13.7 per cent.

During the first and fourth quarters of 2013, the value of capital city properties increased by 2.8 per cent, while the second quarter recorded a low increase of just 0.2 per cent. However, this was made up for in the third quarter, which experienced a value rise of 3.7 per cent.

Cameron Kusher, senior research analyst for RP Data, indicated that while the first six months of the year only saw a 3 per cent increase in property values, the later half of the year rose to an impressive 6.6 per cent growth in value - highlighting the strengthening momentum of the market.

Naturally, this varies between the cities. For example, Sydney saw the largest growth across the nation, growing by 14.5 per cent over the last 12 months.

Coming in second was Perth, which saw an increase of 9.9 per cent year-on-year, with Melbourne bringing up third place after seeing property values grow by 8.5 per cent over the last year.

Overall, houses experienced a slightly higher degree of growth, increasing by 9.9 per cent. Units, on the other hand, underwent an increase of 9 per cent - a fantastic result for the value of capital city apartments across the nation.

Categories: Home Loans, Property Investment