Falls in median house prices coupled with continuing strength in the rental market is good news for investors, the Real Estate Institute of Australia (REIA) has reported on the back of new data.
According to the Bendigo Bank/REIA Real Estate Market Facts publication, the capital city weighted average median price decreased by 0.6 per cent for houses and by 1.2 per cent for other dwellings over the September quarter.
The weighted average median house price for the eight capital cities is now $515,669, said recently appointed REIA president, Peter Bushby.
“There has been a slight dip since the June quarter, however the median house price has not changed when compared to the same period last year,” he said.
“With the exception of Melbourne and Canberra, all capitals contributed to the decrease. The largest decrease was in Hobart, down 8.1 per cent to $340,000. However, compared to the June quarter, the median house price increased in Canberra by 1.5 per cent and by one per cent in Melbourne.”
“Sydney continues to have the highest median house price across the capital cities at $641,890, 24.5 per cent above the weighted average, while compared to the same time last year, Darwin recorded the largest increase, up by 12 per cent,” noted Mr Bushby.
“Adelaide’s median house price dipped by 2.3 per cent over the September quarter to $386,000, while the median house price in Brisbane decreased by 0.7 per cent over the quarter to $430,000.”
“The news is good for investors, with improving yields, thanks to tight vacancy factors and the impact on rental returns coupled with lower borrowing costs.”
“Hobart is the only capital to record a decrease in the median rent for houses, down by three per cent. Sydney, Melbourne, Adelaide and Canberra remained unchanged and Brisbane, Perth and Darwin recorded increases. Vacancy rates remain low in all centres except Hobart which is at five per cent.”
“With improved affordability and a stable price environment, I would expect to see renewed interest in housing in the New Year,” added Mr Bushby.