“Middle Australia” is driving capital city price rises this year, analysts say.
RP Data researcher Cameron Kusher says that suburbs with middle-priced homes across the country are attracting the greatest increases in home values.
“Sixty per cent of these have recorded growth of 1.6 per cent over the year to February 2013,” Mr Kusher said.
By contrast, “values have fallen by as much as -0.9 per cent and -0.6 per cent across affordable suburbs and the most expensive suburbs, respectively”.
The RP Data-Rismark Home Value Index results for March indicated that capital city home values increased by 1.3 per cent over the month and 2.8 per cent over the quarter.
Mr Kusher said that overall, home values nationally had now increased by 4.7 per cent since they reached their recent low.
“The recent increase in capital city home values has been driven by improving market conditions across the broad, middle-priced suburbs across each capital city,” Mr Kusher said.
In Sydney, dwelling values jumped 3.4 per cent in the March quarter of this year. In Melbourne, dwelling values were up 0.8 per cent for the month and 2.5 per cent over the quarter.
Sydney is a little different from other capital cities because its home values are back above their previous peak. Other centres are yet to regain that level.
In an example of the strength of the Sydney market, the clearance rate was 69 per cent last Saturday, despite a high number of listings, more than 200 above the post-Easter weekend last year. The clearance rate was more than 10 percentage points higher than the weekend after Easter last year.
One of the day’s highlights was the auction of an “unpolished gem” at 9 Pearl Avenue, Chatswood, which sold for $1,140,000 – $240,000 over reserve.
“Throughout the campaign we had 135 groups of buyers, with over 50 of these groups reviewing the contract prior to the auction,” agent Nick Playfair said.
“On the day of the auction there were 24 registered bidders with seven of these groups actively bidding during the auction.”
A north shore resident bought the property, intending to rent it our prior to moving in later.
Story by Stephen Nicholls, Story source: www.domain.com.au