After a fairly sluggish September, house values in Australia are once again on the rise.
According to RP Data’s most recent National Capital City Hedonic Index, Australian home values rose by an indicative 1.4 per cent in October after just 0.4 per cent growth in September.
Australian home values have risen 10 per cent since the start of 2009, suggesting the most recent interest rate increase has not yet been felt by the market.
Darwin has enjoyed a tremendous run over the last 12 to 18 months, with values now similar to those recorded in Melbourne.
Over the year to date, Melbourne has been the best performing capital city, delivering capital gains of +14.9 per cent, followed closely by Darwin with +12.7 per cent.
Melbourne also outperformed every other capital city in the three months to September, with home values climbing 4.5 per cent.
However, RP Data’s senior research analyst Cameron Kusher said the likeliness of further interest rate rises over the next 12 to 18 months would ultimately result in more normal growth conditions over 2010.
“Climbing interest rates, the removal of the first home buyers grant boost and higher loan costs will all result in greater pressure on the rental market,” Mr Kusher said.