Property Prices End the Financial Year on a High

PROPERTY prices have ended the financial year on a high with the latest figures revealing a 10.1 per cent increase compared to 12 months ago.

The RP Data-Rismark June Hedonic Home Value Index results reveal that values went up another 1.4 per cent during June.

Values increased in most capital cities with Sydney and Melbourne leading the charge.

Adelaide and Darwin were the only capital cities to experience a drop in values during the past month.

RP Data research director Tim Lawless said the increase in June made up some of the ground lost in a 1.9 per cent drop in May.

Sydney dwelling values increased by 15.4 per cent for the year, while in Melbourne values rose by 9.4 per cent.

Mr Lawless said the Brisbane housing market was starting to gather some pace, with its values up 7 per cent for the year.

Values in Adelaide and Canberra went up by 2.9 per cent, while in Hobart they increased by 2.5 per cent for the year.

Darwin values went up by 5.7 per cent for the year, but dropped by 3 per cent in June. In Adelaide values dropped by 0.7 per cent in June.

Mr Lawless said it was properties in the middle price range of the market which had experienced the highest level of price growth for the year.

“Dwelling values at the most affordable end of the capital city housing markets have moved 8.8 per cent higher over the past year compared with a 10.3 per cent capital gain across the most expensive suburbs and a 10.6 per cent increase across the broad middle fifty per cent of the capital city market,’’ he said.

Mr Lawless does not predict any drop in housing values for as long as interest rates remain low.

He said affordability would likely have more affect on buyer demand.

Story source: www.news.com.au