Property Values on the Rise

Careful who you choose to listen to, it could cost you Thousands of $’s in lost opportunity !

Capital Growth cities in Australia

Capital Growth up 6.6%

Contrary to media reports misrepresenting factual evidence there are many locations across Australia still experiencing capital growth

It is a fact that house prices continue to grow in major cities and the latest data (dated 31 March 2016) from CoreLogic suggests house prices generally have risen in the past 12 months in Melbourne (up 10.7%), Sydney (up 7.5%), Adelaide (up 3.3%), Hobart (up 4.0%), Brisbane (up 4.9%) and Canberra (up 1.7%).

The generalised average situation across the eight capital cities is an annual rise of 6.6%.

Media has seen the figures differently. One News Corp headline claims that “property price growth has ground to a halt”. The Australian says house price growth is “the slowest in three years”.

Journalists arrive at these conclusions by generalising about “Australian property prices” and by focusing on short time frames. Monthly changes in price indexes are always erratic and ultimately meaningless – but journalists place great emphasis on them because it makes it easy to create negatively sensational headlines.

But the CoreLogic data is still largely positive, even when examined over shorter time frames.

In the March Quarter there were rises in the house price indexes for Sydney (up 2.3%), Melbourne (2.5%), Adelaide (up 2.2%), Darwin (up 3.6%), Canberra (1.7%) and, leading the nation, Hobart (up 6.5% in three months). Brisbane is unchanged and Perth (down 1.0%) is the only city in the negative.

So what do the figures really tell us, in terms of meaningful, realistic trends? Industry assessment includes the following:-

  • The rate price growth in Sydney continues to slow down, not surprisingly as it is abundantly clear that Sydney’s boom is well and truly past its peak.
  • Melbourne leads capital city Australia on price growth, but its rate of price growth has probably peaked and will show lower rates of growth in the near future.
  • Moderate growth is happening in some of the smaller capital cities, notably Hobart, Brisbane, Adelaide and Hobart. The Tasmanian capital appears to be gathering speed, rising off a low base as its economy recovers.
  • Perth and Darwin, no longer boosted by a resources boom, continue to have struggling markets, although the rate of price decline is quite small.

I continue to ask “Why so much negativity in the media?”

If you tell a lie often enough it begins to sound like the truth … expertise advise “Ignore the press”.  If you are serious rather look towards factual evidence and you will soon work out that there are opportunities abound to continue to grow and secure some wealth through astute property investment !

Industry Reports continue to demonstrate continued capital growth, here is a latest headline from CommSec “Rumours of the death of the Australian housing market are widely exaggerated,” says Craig James, Chief Economist, CommSec. Capital city home prices soared by 10% with the latest rise of 1.6% in May 2016

Melbourne, Sydney, South East Queensland continue to demonstrate capital growth, low rental vacancies, strong rental yields with high demand.

Note : not all properties or locations are suitable for investment.

 

Housing Affordability reality

According to Terry Ryder : “Housing affordability is strong in most locations across Australia, but you wouldn’t know it from reading mainstream media coverage. Journalists love to declare The Great Australian Dream dead and it’s common to see articles claiming that young Australians are priced out of the market.

Yet the facts contradict these claims.

The latest Housing Affordability Index, published quarterly by the HIA, shows that the average situation nationally is the best it’s been in five years.

In some states, it’s the best affordability situation since 2003. Sydney is a tough market for new buyers to crack but there are 20 million Australians who don’t live in Sydney. This is reinforced by the actual buying behaviour of young adults – according to the quarterly NAB survey, a third of all sales of new homes are made to first-time buyers, while 27% of sales of existing homes are to first-timers.

According to research by finder.com.au, young buyers today have it easier than Baby Boomers buying in the late 1980s, because interest rates are so much lower and borrowing options more plentiful. In the late 1980s in NSW, mortgage payments took up 45% of average income, where today (despite higher prices) the average situation is 31% of income. “

 

The same goes for so called property bubbles, over supply and investors or the Chinese are to blame for property being too expensive

 

Need we go on? Or …

Investment Property Firm

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