Stellar start to 2014
The property market has had an impressive start to the year, with every capital city recording a month-on-month rise in property values.
In March, capital city prices grew by 2.3 per cent which pushed the overall capital increase across the country to 3.5 per cent in the first quarter of the year.
Melbourne posted the highest level of growth at 5.4 per cent over the quarter. Sydney and Hobart also recorded a strong March quarter with values up 4.4 per cent and 4.7 per cent respectively.
According to RP Data research director Tim Lawless, half of all Australia’s capital cities are now posting record-high dwelling values, with Sydney’s housing market showing the most substantial increase beyond its previous market high.
“Sydney dwelling values are now 15.8% higher than their previous peak, substantially more than Melbourne where dwelling values are 4.7% higher than their previous peak. Perth and Canberra values have risen to be 2.9 and 1.2% higher than their previous high point, respectively,” Mr Lawless said.
“Over the long term, I don’t believe such a strong pace of growth can be sustained - we expect housing market conditions to cool down as the year progresses”.