Housing market growth remains strong: RP DATA

Housing market growth remains strong: RP DATA

by Staff Reporter 0 comments

The past financial year has seen dwelling values in Australia rise by 9.7 per cent compared with a 3.8 per cent capital gain over the previous year, according to an end of financial year RP Data report. 

Sydney has been the primary driver of capital gains, with values almost up 15 per cent over the financial year, followed by Melbourne, where capital gains will end the year around eight per cent higher.

Brisbane values have gained about 6.8 per cent, Darwin values are up about 6.6 per cent, Perth is up 5.5 per cent, Adelaide by 3 per cent, Hobart 2.3 per cent and Canberra has risen 2.2 per cent.

While growth conditions have been very strong, compared to previous growth cycles the rate of capital gain has been quite tame, according to RP Data.

RP Data will release the final end of financial year capital gains figures today where it is expecting the market to show a partial recovery from the 1.9 per cent drop in values over the month of May.

RP Data has also reported that over the four weeks to June 22 there were 37,444 newly advertised properties listed for sale nationally.

“New listings have continued to trend lower, which is most likely to be a seasonal phenomenon,” RP Data stated.

“Nationally, new listings have moved to 2.9 per cent lower than a year ago, while across the combined capital cities new stock being added to the market is virtually on par with the same time last year, at 0.8 per cent higher."

Meanwhile, RP Data’s Pain & Gain quarterly report revealed where profits from property were made and where others had sold for less than their purchase price.

The report revealed that of the 64,518 residential property resales, 9.8 per cent recorded a gross loss from the original purchase price.

The gross value of the losses associated with these loss-making resales totalled $381.1 million, while 90.2 per cent of all March 2014 quarter resales recorded a gross profit relative to their original purchase price, according to RP Data. 

Housing market growth remains strong: RP DATA
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