Houses in Australia’s capital cities have recorded the strongest capital gains for winter since 2007.
Capital city dwelling values moved 4.2% higher over the three months to the end of August, the strongest capital gain over the three months of winter since 2007, according to The August RP Data CoreLogic Hedonic Home Value Index shows.
The national number was driven by a dramatic rise in Melbourne (6.4%) and Sydney (5%).
The next best performing city was Canberra where values shifted 2.5% higher.
Every other capital city has recorded more moderate conditions over winter with Adelaide values up 1.5%, Brisbane recording a 1.3% gain and Perth values up 1%.
A modest drop in values over the winter months was seen across Darwin (-0.6%) and Hobart (-0.8%).
RP Data research director Tim Lawless expects house values to keep rising.
“With today marking the first day of Spring, we are expecting listings numbers to rise over the coming month which will provide a real test for the housing market,” he says.
“Considering the ongoing high rate of auction clearance rates, a generally rapid rate of sale and the ongoing low interest rate environment, it’s likely that dwelling values rise even further over the next three months.
“Consumer confidence is also moving in the right direction now after the post-budget slump which will add fuel to the exuberant buying and selling conditions we have seen during winter.
Here’s the detail from RP Data:
Highlights over the three months to August:
- Best performing capital city: Melbourne +6.4%
- Weakest performing capital city: Hobart -0.8%
- Highest rental yields: Darwin houses with gross rental yield of 5.9% and Darwin Units at 5.8%
- Lowest rental yields: Melbourne houses with gross rental yield of 3.2% and Melbourne units at 4.2%
- Most expensive city: Sydney with a median dwelling price of $650,000
- Most affordable city: Hobart with a median dwelling price of $310,000
Here’s the returns, according to RP Data, from property over various time frames:
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