Home values up across the board

Residential property values increased in all eight capitals in the December quarter, according to the Australian Bureau of Statistics.

The Residential Property Price Index (RPPI), a measure including houses and attached dwellings, shows the weighted average of the eight capital cities rose by 3.4 per cent this quarter, to a total rise of 9.3 per cent over the last year.

Sydney house prices growth was the strongest at 4.9 per cent in the December quarter 2013, followed by Perth at 3.5 per cent.

Melbourne experienced house price growth of 2.8 per cent for the quarter, with Brisbane up 3 per cent, Adelaide up 2.8 per cent, Hobart up 2.3 per cent, Darwin up 2.7 per cent and Canberra up by 0.4 per cent.

Prices for attached dwellings, which includes flats and apartments, also rose in all capital cities except Darwin, which recorded a fall of 0.4 per cent.

Prices went up in Sydney by 4.4 per cent, Melbourne by 1.9 per cent, Perth by 2.6 per cent, Brisbane by 2.2 per cent, Adelaide by 1.5 per cent, Hobart by 0.7 per cent and Canberra by 0.1 per cent.

Housing Industry Association economist Shane Garrett said the data shows how well the property market fared towards the later stages of 2013, but warned action must be taken to ensure this growth is now sustained.

“In order to maintain a healthy level of activity in the market, more will have to be done to deal with constraints around planning, land supply and infrastructure funding,” he said.

“Addressing these issues will do much to improve longer-term housing affordability and will ensure that Australia achieves its full economic potential over coming years and decades,” said Mr Garrett.

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