Will Value Growth Stagnate From Here?
An article on the website Your Investment Property sheds light on the recent spate of house price growth. The combined capital city values have risen by 1% on last count. The state-by-state trend though suggests something quite different.
It is all about Sydney, Melbourne, and Brisbane for now
Apart from Sydney, Melbourne and Brisbane, capital city trends have decidedly been on the downward spiral. Canberra, Darwin, Adelaide, Perth and Hobart have all exhibited negative growth. While the quarter leading to October showed a 2.2% growth hike in dwelling values, it would be fair to say that some of the leading market players like Sydney and Melbourne compensated for the poor performances of the peer markets.
Amongst all the capital cities, Adelaide is one which has suffered a reversal of fortune; it has come to a state of -1.1% negative growth from a point of growth.
Capital city combined value growth slowing down
While all the eight capital cities have witnessed growth on a year-to-year scale, the growth is giving signals of moderating. Stagnancy may not be the word that defines the situation yet buy moderation certainly seems to be on the card. Let this figure suffice: April to April growth was 11.5% while October to October growth is 8.9%- certainly makes a case that capital value growth is slowing down.
You can read the original article here.
Brisbane…..right into the big league!
If the latest figures for mortgage finance and owner-occupier commitments are to be believed, Brisbane is all set to be the third major performer in times to come. This said, the dubious trail of events persist in ailing property market economies like Hobart and Darwin and this means that the combined capital city figures will not give a reason to rejoice in at least the foreseeable future.