Four rate rises in five board meetings have not had a negative effect on home values, according to RP Data.
Research from RP Data has found that dwelling values in Australia’s capital cities continued to rise by 1.4 per cent over February, following 2.0 per cent growth in January.
In the 12 months to end February, Australian capital city home values have increased by 12.7 per cent after values fell by circa 3 per cent in 2008.
But while the yearly growth seems substantial, Rismark chief executive officer Christopher Joye said the data needed to be placed in context.
“Based on the latest Australian Bureau of Statistics National Accounts data, the per capita disposable household incomes grew by 6.0 per cent per annum over the five years to December 2009. At the same time, Australian capital city dwelling values increased by almost exactly the same amount (6.2 per cent per annum) despite the strong growth registered in 2009,” Mr Rismark said.
“A more remarkable statistic is that in the six years to end December 2009, dwelling values in Australia’s largest city, Sydney, only rose by a stunningly low 1.3 per cent per annum. At the same time, per capita disposable household incomes grew by 5.7 per cent per annum. That is, household incomes have risen much more rapidly than Sydney dwelling values over this period, which have actually declined in inflation-adjusted terms.”