Slight dip in residential property values in April
Residential property values contracted by -0.5 per cent in April, as shown in the Home Value Index (HVI) release by RP Data on Wednesday (May 1).
This drop follows a solid growth of 2.8 per cent over the first three months of 2013, so is not necessarily a trend toward value falls for residential properties, said RP data director of research Tim Lawless.
"When viewed in line with other metrics such as auction clearance rates, private treaty indicators and some improvement in housing finance demand, it is likely that the negative April result will be a blip along the path to recovery."
These sentiments are mirrored by an article from the Property Council of Australia titled 'The New Normal', which highlights the post global-finance crisis trends in the property market.
The New Normal quotes AMP Capital chief economist Shane Oliver, who said: "Double-digit growth is a thing of the past and now we have constrained growth… But we will still have cycles."
Rental property prices continued to trend upward, as over the three months ending April, combined capital cities house rents were up 1.4 per cent.