Published on January 31st, 2013
APM records national growth in real estate values
Recent real estate data has found that all capital cities have recorded price rises with the national median values increasing 2.1 per cent in 2012.
Darwin recorded the greatest growth – increasing ten per cent from December 2011 to December 2012, according to Australian Property Monitors (APM).
Perth enjoyed the second biggest rise, increasing 6.1 per cent.
Leith van Onselen, MacroBusiness economist told The Age that those capitals were standouts compared to other centres.
He explained: "Elsewhere, house price growth remained fairly weak, with values either falling over the year, or growing at rates below inflation.
"A key unknown in the year ahead is whether the October expiry of first home buyers' grants on pre-existing dwellings in Sydney and Brisbane will affect house prices."
The New South Wales capital enjoyed a 3.4 per cent jump, hitting a record high average of $656,400.
Units saw a higher increase, jumping 5.6 per cent to $475,300.
Senior economist with APM Andrew Wilson explained to Fairfax newspaper publications that this should add some optimism to the sector.
He explained: "The result will add confidence that a recovery is underway but it's important to note that the capital city markets aren't moving as a monolith.
"Even though we do look at the national figure – and it has risen – it really reflects a rising Sydney and Perth market but a flat-lining Melbourne market."
He added that better performing property markets are reflective of better performing economies – with both Perth and Darwin enjoying high levels of productivity as a result of investment.
Mr Wilson explained that the performance of 2013 markets will be dependent on how individual economies perform or cope with whatever challenges they face over the coming 12 months.
He said positive financial indicators would lead pundits to believe that this year will see a recovery in the property sector – to what degree, is yet to be determined.