1300 554 553

1300 554 553

info@platinumdirectfinance.com.au

Which state leads the house price recovery?

Posted on: February 5, 2013 by Platinum Direct

« Back to blog

  • Facebook
  • Twitter
  • Google Plus
- Share this post

After a couple of years of reductions, it appears the housing market is in a mild recovery, with new figures showing prices rose across all the capital cities at the end of last year. Australian Property Monitors (APM) research reveals that the national median house price rose 2.1 percent in 2012, reversing much of the 3.6 percent drop during 2011. APM says the positive results were largely the result of “solid” growth of nearly 2 percent in the fourth quarter. Interestingly, the various states recorded varying rates of recovery with Perth leading the charge.

“The result will add confidence that a recovery is under way but it’s important to note that the capital city markets aren’t moving as a monolith,” said APM senior economist Andrew Wilson. “Even though we do look at the national figure – and it has risen – it really reflects a rising Sydney and Perth market but a flat-lining Melbourne market.”

The rate of recovery starts with lowly Melbourne where house prices made only a minor rise of 0.5 percent to $526,300.
In Sydney, stronger conditions raised house prices by 3.4 percent to hit a record average of $656,400. Unit prices rose 5.6 percent to a new high at an average $475,300.

“Sydney has now surpassed the peak it hit in June 2011, wiping out the losses that have been experienced over the two-year downturn. The market has definitively recovered,” Wilson said.

Predictably, the positive effects from the mining boom helped Perth top the list of the best performing markets in the country after its house prices rose 6.1 per cent to $560,800.

However, APM’s figures differ from the findings of other data providers who measure house price movements using a different methodology. RP Data-Rismark reports the national dwelling value declined 1.2 per cent in the December quarter and 0.4 per cent over the year.

  • Facebook
  • Twitter
  • Google Plus
- Share this post