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Australia's unshakeable residential property markets

On Jul 31 2013
Tagged as:
  • Residential

Despite grave concerns over the residential property market in recent years due to the GFC, a ...

Despite grave concerns over the residential property market in recent years due to the GFC, a number of suburbs and areas have not only shown great resilience to the hardships, but are also starting to show positive results, according to data from the Australian Property Investor (API).

In a release titled '152 bulletproof property suburbs revealed', the magazine studied areas around the country where prices simply didn't falter, despite the trying times in many other places.

Each of these 152 areas in Australia ended every year of the past decade in positive price territory, according to the July 8 release.

New South Wales and Victoria led the way with 46 and 59 untouchable suburbs a piece. They were followed by the Australian Capital Territory with six, South Australia with seven and Tasmania with one.

API's deputy editor Shannon Molloy said that a variety of reasons can account for these trends, such as the price of buying a property in these areas, the demand for dwellings and their proximity to economic drivers such as mining areas or new construction projects.

The 2003 to 2012 period was tough for the property market, as most areas saw a drop in values at the end of each year

"During that time, most markets experienced an array of challenges and significant downward pressure on prices, but not these bulletproof suburbs," Mr Molloy explained.

The statistics were spread out across units and houses. Mr Molloy called the feat of these 152 suburbs "quite the achievement".

Other property results around the country are also showing improvements to the market.

The Real Estate Institute of Victoria (REIV) released figures on July 20 showing that median house prices in Melbourne rose 2.4 per cent in the June quarter.

Seasonally adjusted, the average house now costs $562,000, up from $549,000 in the March quarter.

Chief executive officer of the REIV Enzo Raimondo said that "conditions for both buyers and sellers look very solid in the lead up to the spring selling season. Unlike last year there are more active buyers looking for a home and this is driving moderate price growth."

Meanwhile the June 2013 rental property report from the Australian Property Monitors has shown that Perth rents are continuing to grow across the board.

While tough conditions remain for many places, there are still some areas in Australia that have been described as "bulletproof".

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