Property Price Growth
Property prices in Australia are growing at a firm pace with capital city property values rising at their fastest rate in 7 years.
The latest CoreLogic home value index revealed property prices increased 1.4 per cent across the combined capital cities in March.
This brings the annual growth rate across capital cities to 12.9 per cent — the highest annual rate of growth since the twelve months ending May 2010.
Nationally price growth is driven by two capital cities in particular.
In Sydney, the growth rate is faster than any experienced since 2002 at 5 per cent, while Melbourne is experiencing a solid increase of 4.2 per cent.
Canberra and Hobart are also consistently recording strong growth.
Half of Australia’s capitals now have an annual growth rate of more than 10 per cent, however Brisbane, Adelaide, Perth and Darwin are still showing either negative growth or very slow gains.
During March Darwin and Hobart had the highest growth in median dwelling price of 3.1 per cent each.
This was followed by Melbourne 1.9 per cent, Sydney and Canberra, 1.4 per cent, Perth, 1 per cent, Adelaide 0.2 per cent and Brisbane 0.2 per cent.
Experts predict this growth rate may begin to slow as lending conditions for investment purposes will tighten, particularly for investors with small deposits or those applying for an interest only loan.
For the time being, figures indicate a rather healthy property economy nationwide.