December property report

With 2014 almost at end we thought that this month’s property could be used to give an idea about what lies ahead in 2015.

Across the country in November capital city home values fell by -0.3%, but grew by 0.8% for the past three months and 8.5% over the past year.

Only Sydney (1.0%), Brisbane(0.4%), Perth (0.9%) and Hobart (0.2%) recorded value rises for the month. The big loser was Melbourne which fell by 2.6% for November. However, capital city home values rose in each capital city over the past year. The greatest increases were recorded in Sydney (13.2%), Melbourne (8.3%), Brisbane (6.0%) and Hobart (5.2%) with all other capital cities recording value growth of less than 3%.

For the 12 months to August 39% of homes and 46.6% of units sold for less than $400,000 across the country. Focusing on just the capital cities and these numbers drop to 22.4% and 35.9% respectively.

Over the 3 months to October the most affordable 25% of suburbs grew by 2.6% while the most expensive 25% rose by 1.8%. The middle 50% had the greatest growth for the quarter with 3.0%. Over the past 12 months the growth rates have been 8.5%, 8.8% and 9.8% respectively.

As can be seen in the below graph, rental growth has been slowing. However gross rental yield has remained relatively stagnant. Depending on what your plans are this may be something to keep in mind.

Housing finance has continued to show growth which is a sign that there is still activity.

The market still has plenty of life and there will always be opportunities. We hope we can help you take advantage of them in 2015. Keep an eye out on the performance of the economy. Recently, the price of iron ore has dropped and unemployment risen. These will have an impact on the property market but it may also result in further interest rate cuts by the RBA.

If you or anyone you know has a finance enquiry, please call us on (08) 9289 7777 or email info@nullfinancedetective.com.au.

Stats: RP Data