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Published on December 3rd, 2012

November sees property value rises in most capitals

The fall in value of Melbourne residential property has offset the gains of other capital cities to result in no changes to the national percentage.

RP Data shows all capital cities saw growth in their property values in November, except Melbourne, with Perth recording the highest gain of one per cent.

Melbourne saw a decline of one per cent.

Brisbane and Adelaide also grew by half a per cent, while Sydney and Hobart only improved by 0.1 per cent.

For quarterly growth, Darwin saw the greatest rise in the three months to September with 3.1 per cent while Perth came second on three per cent flat.

Canberra and Melbourne recorded losses of 0.7 per cent and Hobart detracted by 4.5 per cent.

Cameron Kusher, RP Data senior research analyst, said that there are discrepancies with these results.

He mentioned: "Home values in Brisbane and Perth remain below where they were five years ago, whereas the other mainland cities have all increased over this period.

"This has meant that relative to the other capital cities, Brisbane and Perth have experienced affordability improvements and subsequently we may see them become more popular from both an owner occupation and investment perspective."

Annually speaking, Darwin had a rise of 13.1 per cent – much higher than Perth which had the second greatest improvement of 3.4 per cent.

Rismark International CEO Ben Skilbeck said that any cut to official interest rates by the Reserve Bank of Australia won't have an effect on property prices until next year.

Australian Bureau of Statistics data shows that building approvals have increased along with improving finance commitments for owners of property.

Mr Skilbeck said that this positive data is reflected in the growing level of sales activity and improving property values.


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