House prices rise nationally - good news for investors

By the resi financial blog team, 09 September 2013

House prices up in June 2013

In what could be good news for current owners of investment property in Australia, new research has shown that median house prices have risen nationally across the capital cities.

According to information from Australian Property Monitors (APM) for the June 2013 quarter, prices in the country rose by 2.8 per cent to $564,325, which may indicate a good level of demand in the market.

Median prices for units also rose over the quarter by two per cent, bringing the national average up to $427,573.

This is also a sign of encouragement for buyers looking to make a property investment, as price growth can lead to a better return on investment once the property is sold at a later date.

Perth had a stand-out performance out of all the capital cities, where houses recorded a price growth of 7.5 per cent over the year and 3.2 per cent in the June quarter. This has brought the cost of a house in the city up to $584,487.

Furthermore, Perth saw a notable rise of 9.3 per cent over the year for unit prices, translating to the cost of a unit reaching $386,798.

Other top performing cities in the country include Sydney and Melbourne, where Sydney experienced a new record high for house and unit prices which rose by 2.7 per cent and 2.4 per cent over the quarter.

APM senior economist Andrew Wilson stated that increased buyer activity has helped to fuel the price growth across the country, as well as variable and fixed interest rates in Australia being at a low level - aiding confidence levels.

According to Dr Wilson, property investors are one of the key drivers for house price growth in most markets.

"Buyer activity is set to accelerate through the remainder of 2013 with market momentum and prices clearly on the rise," he said.

For expert advice on how to refinance your loan, or take out a new mortgage, contact one of the resi loan specialists today.

Categories: Property Investment