Perhaps proving property prices have hit the bottom of the cycle, median house prices across Australia’s capital cities increased 1.4 per cent over the June quarter.
In addition, other dwellings were up 0.6 per cent, according to the latest data from the Bendigo Bank/REIA Real Estate Market Facts report.
“The results underscore the old property adage that there really are ‘markets within markets’ both at different levels in different cities and in regional centres around the states and territories where good value and solid returns can still be found,” Bendigo and Adelaide Bank’s executive retail Dennis Bice said.
The report also revealed an 11.8 per cent increase in the number of loans to first home buyers over the last 12 months.
“People have been putting the big decisions, such as upsizing or downsizing their housing preferences on hold for some time now but there is evidence to suggest that activity in the property market is beginning to build again,” said Mr Bice.
“Investors are also seeing strong demand for rentals in the major centres with tight vacancy rates.
“The positive impact this has on rental returns, coupled with lower borrowing costs, should see a more active spring real estate season,” he said.
“The report also finds that around Australia, residential investment property returns for three bedroom houses and two bedroom ‘other dwellings’, such as apartments and townhouses show an average annual return over the past five and 10 year periods in the range of 6.6 per cent to 16.2 per cent.”