MELBOURNE has enjoyed the nation’s best winter property value growth, figures released today by RP Data reveal.
A median $570,000 priced house gained about $35,000 (6.6 per cent) in the three months to the end of August, according to the data.
Units were not far behind. A median priced $460,000 unit gained about $22,700 (5.2 per cent) over the three months to August.
And there could be more gains to come.
RP Data research director Tim Lawless said the latest growth was an extension of a strong cycle that had added 19.5 per cent to Melbourne’s median dwelling value since June, 2012.
“There’s been a lot of equity built for people who bought in Melbourne at the right time,” Mr Lawless said.
“On average you have gained nearly $100,000 in your property.”
Since the beginning of 2009 Melbourne home values have risen 46.1 per cent, according to RP Data figures.
Mr Lawless said the growth would be a positive for the economy, but noted it would make life harder for those yet to get a foot on the property ladder.
“For those still looking to buy the barriers to entry have become quite significant,” Mr Lawless said.
“I’m still pretty surprised by how strong Sydney and Melbourne have been — we are still seeing a lot of investment in the two cities.”
He noted investors appeared to be ignoring low rental yields in the hope of strong capital growth despite the advanced stage of the current property cycle.
Mr Lawless said further value gains were possible as more properties hit the market in spring.
“We are expecting listing numbers to rise over the coming month which will provide a real test for the housing market,” he said.
“Consumer confidence is also moving in the right direction now after a post-budget slump which will add fuel to the exuberant buying and selling conditions we have seen during winter.”
But it is worth noting that the final month of winter, August, recorded only a very modest gain for house values — up about 0.7 per cent with stronger growth in the first part of winter.