August Sydney Property Report
With the budget, end of financial year and winter all happening around the same time it’s not surprising the market has slowed down a bit. With these events behind us will it pick up?
Dwelling values increased by 1.6% across the combined capital cities in July and rose by 1.1% over the three months to July 2014. Only Sydney, Melbourne, Darwin and Canberra experienced rises. The same trend also occurred for the past three months. Sydney rose by 1.5 percent and 2.0 percent in the mentioned time frames. Median prices across the country are $555,000 for houses and $475,000 for units. Sydney is still the country’s leader with prices of $745,000 and $569,000.
For the city houses outperformed their counterparts in terms of capital gains over the past 12 months. They have increased by 15.3 percent compared to the 12.5 percent seen in units. Melbourne had the best month for any of the Australian capitals with dwelling values rising by 4.1 percent.
Capital gains continued to outpace rental growth meaning rental yields were down across the nation. Sydney houses had a gross rental yield of 3.7 percent, slightly lower than the national yield of 3.8 percent while it was the same story with the unit yield of 4.5 percent, again 0.1 percent lower. Darwin had the highest yields of 5.9 percent and 5.8 percent respectively while Melbourne has the lowest of 3.3 percent and 4.2 percent.
Dwelling approvals have been outpaced across the country by population growth since 2004. Over the past year New South Wales population increased by 1.5 percent. This was 1.2 percentage points lower than the highest state, Western Australia, and slightly lower than the Australian rate of 1.7 percent.
There are signs consumer confidence is bouncing back from the slump that was a result of the budget. A reason for this could be because the record low cash rate was left untouched by the RBA for the 12th consecutive month and it looks set to stay that way for the foreseeable future.
So with consumer confidence getting back on track, interest rates remaining low and population growth still strong there is plenty of life in the Australian property market!
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Source: RP Data