Property Market Update
We have all heard and read about it – the impending doom and gloom of the property market. In fact, as far as we can remember, there has always been negative press about property prices and “the bubble”.
CoreLogic has found that combined capital city dwelling values have increased by 9.6% in the past financial year, which is greater than the previous financial year. This means that combined city dwellings have been increasing in the past 5 consecutive financial years! Property values have gone up in each of the major capital cities except for Brisbane and Darwin.
Read on to find out how the property market has been performing in our major capital cities…
Prices have increased on average by 12.2% in the last financial year and are predicted to continue the steady upward climb due to migration, shortage of demand vs supply. Rents are tipped to rise due to immigration and fewer home buyers entering the market.
There was a 9.6% price rise – the greatest rise in value since FY2010.
Property prices have risen progressively faster over the past five years, with an average price increase of 13.7% in the last year – far superseding Sydney property growth! Similar to Sydney, rents are also tipped to rise due to migration – according to reliable sources, 2000 people move to Melbourne every week!
Brisbane performed at a slightly slower pace, with 2% price rise. This is the slowest rate of growth in the past 5 years.
Hobart is going through a small property boom with prices rising by 6.8%. This represents the highest rise in the past 5 years
Prices have been rising in the past 5 years and continued to rise by 2.4% in FY2017.
Property prices continue to fall but there is some good news – the rate of decline has slowed from -4.7% in FY2016 to -1.3% in FY2017
Prices continue to fall and now sits at -7% – the biggest price slide since FY2011
The next few months will be interesting as investors disincentives rise and First Home Buyer incentives kick in. We are predicting that this will slow down investor activity especially in the Sydney market.
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