New figures show that property prices in Australia are starting to rise again after a couple of years in the doldrums.
The latest CoreLogic Home Value Index reveals that while property prices in the country’s eight capital cities still fell on an annual basis, there were clear signs of a recovery in the most recent quarter.
Annually, average property values in Australia’s eight state and territory capitals fell by 4.3 per cent in the 12 months to 30th September, taking the combined average price of a property in a capital city to AUS$602,319.
Prices fell in six of the eight capital cities during this period, with only Tasmania’s capital Hobart and national capital Canberra recording house price increases.
However, during the past quarter things have started to change. With the government having eased previously stringent lending criteria, and the Reserve Bank of Australia slashing interest rates to just 0.75 per cent a year, interest in the Australian property has been reinvigorated.
Consequently, prices are starting to rise again. In the past quarter, the average house value in the eight capitals combined has risen 2.2 per cent. Sydney and Melbourne are leading this price boom, recording property price increases of 3.5 per cent and 3.4 per cent respectively.
While values were still falling in Perth, Darwin and Adelaide, the scale of the declines were much lower than they had been previously.
And it seems likely that the national property market will continue to recover in the coming months.
a recent survey carried out by the Property Investment Professionals of Australia found that 82 per cent of investors view now as a good time to buy a residential property in the country.
What’s more, 48 per cent of respondents plan to purchase in the next six to 12 months.
Article published 17th October 2019