A new report has found that 43 per cent of all Australian homes are now worth more than twice the original purchase price – however not all Australian property owners have fared so well.
According to RP Data's latest Equity Report, capital city home values have increased by approximately 28 per cent in the last five years, despite the recent property price reductions, including a 3.3 per cent dip in home values over the last 12 months.
The report has revealed that the number of properties that are now worth less than their purchase price has risen to five per cent – up from 3.7 per cent at the end of the last quarter.
The divide between property that has increased in value and those that have dipped highlights the current patchwork property landscape. It also indicates that there are still areas of opportunity for buyers and investors looking to capitalise on a falling rate cycle and flat property market.
The worst instances of negative equity are in Far North Queensland, the Gold Coast and the Sunshine Coast at 20.2 per cent, 14 per cent and 13.5 per cent, respectively. Western Australia's Lower Great Southern and South West and South Eastern regions are also showing high levels of negative equity.
The report found that capital cities have enjoyed longer-term value appreciation and have proven to be less susceptible to ongoing value falls than certain non-capital city markets.
RP Data's Tim Lawless said the Equity Report gives an estimate of equity accumulated across Australia's housing market.
"This is done by measuring the difference between the original purchase price of a home and the current valuation for individual properties around the country," Mr Lawless said.