Guest Guest66881 Posted September 7, 2014 Share Posted September 7, 2014 [h=1]It's a great time to sell! Australia's biggest property hotspots revealed - including the cities where house values have grown the most[/h] Australian properties are booming in the housing market but interest rates could cause a slow down The three months of winter this year recorded Australia's strongest house price growth since 2007 Sydney and Melbourne were recorded as the strongest performing cities By CINDY TRAN FOR DAILY MAIL AUSTRALIA PUBLISHED: 12:12 AEST, 6 September 2014 | UPDATED: 15:22 AEST, 6 September 2014 14shares 2View comments Australian properties are rising higher in the housing market but a rise in interest rates could cause a downturn, according to new data. The RP Data CoreLogic Hedonic Home Value Index found capital cities dwelling values rised 4.2 per cent higher in June, July and August, recording Australia's strongest house price growth in winter since 2007. Sydney and Melbourne were recorded as the strongest performing cities in all capital, where market values recorded a 5.0 per cent and 6.4 per cent lift. The next best performing city was Canberra where values gain 2.5 per cent higher over the three months, according to data. +6 Australian properties are booming in the housing market but interest rates could cause a slow down Adelaide home values rised 1.5 per cent and Brisbane recording a 1.3 per cent gain while Perth values up 1.0 per cent. A modest drop in values over the winter months was seen across Darwin at -0.6 per cent and Hobart -0.8 per cent. Market values are now 10.9 per cent higher over the past 12 months but Sydney and Melbourne were the only cities to double its growth over the past year. RP Data research director Tim Lawless said Sydney and Melbourne housing markets were the strongest performing cities during the 2009/2010 growth cycle. 'Over the latest growth cycle we have seen Sydney dwelling values increase by 27.2 per cent and Melbourne values up by 19.5 per cent,' he said. +6 One of NSW's homes, based in Carlingford in Sydney is seeking offers over $1,050,000 +6 The Templestowe home in Melbourne, Victoria is on the market from $950,000 - $1,050,000 'Since the beginning of 2009, we have seen values rise by a cumulative 50.1 per cent and 46.1 per cent respectively in Sydney and Melbourne.' Darwin and Canberra recorded fairly strong growth at 29 per cent and 21.5 per cent. The next best performer was Perth where values are 15 per cent higher, followed by Adelaide at 9.9 per cent, Brisbane with 5.3 per cent but Hobart values dropped 1.5 per cent lower. 'With September marking the start of Spring, we are expecting listings numbers to rise over the coming month which will provide a real test for the housing market,' Mr Lawless said. 'Considering the ongoing high rate of auction clearance rates, a generally rapid rate of sale and the ongoing low interest rate environment, it's likely that dwelling values rise even further over the next three months. 'Consumer confidence is also moving in the right direction now after the post-budget slump which will add fuel to the exuberant buying and selling conditions we have seen during winter.' +6 The Gunn home in Darwin, Northern Territory is seeking offers over $995,000 +6 The Wright two-storey home in Canberra, Australian Capital Territory is priced at $1,050,000 Despite the population increase of all capital cities, Senior research analyst Cameron Kusher told Property Observer that: 'we may see a slowdown in value growth across these cities.' Mr Kusher said that a rise in interest rates could slow down the housing market in Sydney and Melbourne. 'With interest rates already at historic low levels and returns on safe investment classes so low, the maintenance of current interest rate settings is likely to continue to encourage investment in housing,' he said. +6 The Brentwood home in Perth, Western Australia is on the market from $1,675,000 Property Observer reports the other option to decrease the house price growth would be macro prudential control, alike to that seen in the UK and New Zealand. New Zealand have been introduced to limitations allowing just 10 per cent of lending to mortgages of loan to value ratio (LVR) above 80%. The UK also brings in limitations to just 15 per cent of new mortgage lending going to mortgages 4.5 times the annual income of the lender in a mortgage, according to the Property Observer. Mr Kusher said that given current median prices in Sydney and Melbourne, it’s fair to say that 15 per cent of the mortgagee are borrowing above 4.5 times their annual income. 'With home values in Sydney and Melbourne continuing to march higher it seems as if only higher interest rates or the introduction of macro prudential tools can realistically stop the growth in home value,' he said. Read more: The factors that could trigger Sydney and Melbourne¿s price growth slowdown: RP Data Read more: http://www.dailymail.co.uk/news/article-2745784/Why-Australia-sellers-market-House-prices-rising-higher-higher-boom-soon-grind-halt.html#ixzz3CaX2ried Follow us: @MailOnline on Twitter | DailyMail on Facebook Link to comment Share on other sites More sharing options...
Guest km75 Posted September 7, 2014 Share Posted September 7, 2014 It's just out of control in Sydney - about 12-18 months ago we were confident that we could afford to buy in the suburb we wanted to be, now, we're seriously thinking about looking into moving up to Queensland. There is now nothing in the Northern Beaches for under $1m - entry level is now more like $1.1m, about a year ago it was about $900k. Anyone else trying to buy at the moment? What are your thoughts about the prices? Link to comment Share on other sites More sharing options...
AJ Posted September 7, 2014 Share Posted September 7, 2014 Dont know who is going to buy the houses if the prices rise anymore, there's not that many millionaires! Link to comment Share on other sites More sharing options...
newjez Posted September 7, 2014 Share Posted September 7, 2014 Sydney is starting to look overplayed. Link to comment Share on other sites More sharing options...
simmo Posted September 7, 2014 Share Posted September 7, 2014 Jesus!!! melbs and sydney!! some hideous looking houses but.. Link to comment Share on other sites More sharing options...
newjez Posted September 7, 2014 Share Posted September 7, 2014 Jesus!!! melbs and sydney!!some hideous looking houses but.. But what? Link to comment Share on other sites More sharing options...
stevie ellis Posted September 7, 2014 Share Posted September 7, 2014 Hoose prices are like a lass o the nights punts up and doon Link to comment Share on other sites More sharing options...
Perthbum Posted September 7, 2014 Share Posted September 7, 2014 Terrible quality house at ridiculous prices....buy land and build your own quality house at a fraction of these poor build houses...rip off. Link to comment Share on other sites More sharing options...
NicF Posted September 7, 2014 Share Posted September 7, 2014 Terrible quality house at ridiculous prices....buy land and build your own quality house at a fraction of these poor build houses...rip off. Problem is land prices are also ridiculous in these kind of areas, if any land is available at all. The idea that it is cheaper to buy land and build your own house isn't really that true, unless you are a builder or build a basic house with no extras. We just built our own house and with the cost of the land it cost about the same as buying a similar house in the area. Link to comment Share on other sites More sharing options...
Perthbum Posted September 7, 2014 Share Posted September 7, 2014 Problem is land prices are also ridiculous in these kind of areas, if any land is available at all. The idea that it is cheaper to buy land and build your own house isn't really that true, unless you are a builder or build a basic house with no extras. We just built our own house and with the cost of the land it cost about the same as buying a similar house in the area. But I bet your house is better quality/ Link to comment Share on other sites More sharing options...
abz123 Posted September 7, 2014 Share Posted September 7, 2014 New build and quality don't necessarily go together. I know someone who has just moved into their $2m+ house (build costs only, land on top of that) and it is so shonky they are thinking about selling it. No NHBC equivalent here. Link to comment Share on other sites More sharing options...
Parley Posted September 7, 2014 Share Posted September 7, 2014 Yeah. I might sell and rent for a few years. Link to comment Share on other sites More sharing options...
Que Sera Sera Posted September 7, 2014 Share Posted September 7, 2014 People go on about quality, if you could see the storms that we have here in WA no way can they be poor build, last night we'd have been blown into the ocean but woke up this morning and not a tile out of place Link to comment Share on other sites More sharing options...
Keith and Linda Posted September 7, 2014 Share Posted September 7, 2014 Speaking with me mam last night, a house two doors down from her in Leeds is rented out at 2,050 pounds a month, this is an ex 3 bed council house built in the 1950's I think it sold recently for 130,000 pounds, so not a bad return. Mam thinking of moving out for 6-12 months to live with my brother and build up a nice nest egg to redecorate and update and a few drinks to celebrate! They could also rent somewhere cheaper and nicer on a permanent basis if they wanted and still be quids in. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.