Encouraging Results Recorded for Australian Real Estate in 2013
The property market in Australia has seen significant growth throughout 2013. Various media reports over the year documented high price rises in some areas, while others experienced large fluctuations in property values.
However, recently released information from RP Data has backed up some of these reports with statistics for the 12 months ending December 2013. As a result, this could indicate a great time for property owners to consider listing their homes for sale and take advantage of market conditions.
The RP Data-Rismark National Home Value Index shows house values increased by 2.8 over the final quarter of 2013. On an annual basis, values across the state capitals rose by a notable 9.9 per cent. Units saw similar growth, however it was slightly lower at 9 per cent.
Cameron Kusher, senior research analyst for RP Data, said this was the fastest annual rate of value growth for real estate recorded since August 2010. Interestingly, 2013 experienced the largest calendar year rise in values since 2009.
"Clearly, value growth has gathered momentum throughout the second half of the year," said Mr Kusher in a January 2 statement.
Sydney dominates nationally
Sydney recorded the highest rate of value growth throughout 2013, demonstrating the current strength of the property market.
By the end of the year, RP Data recorded a 15.2 per cent rise in house values throughout the state capital. Units were a few percentage points behind at 11.6 per cent. As a result of the shifts in Sydney's property values, the median price for a dwelling now sits at $775,000.
Real estate in Sydney is expected to boom even further, according to information released from SQM Research in September. Managing Director Louis Christopher said the state capital will see price growth of approximately 15-20 per cent over 2014, indicating encouraging news for owners of property in the area.
Darwin top for rentals
Those looking to invest in rental properties would be wise to look towards the north for real estate in Darwin, where median prices and yields are appealing.
House values have risen by 5.1 per cent over the year, showing positive shifts in the local market.
Although the value growth is not as strong as Sydney or other areas, Darwin has the highest recorded rental yields in the country.
With a median dwelling price of $595,000 and gross yields of 6 per cent for houses, Darwin has come out as one of the strongest areas for property investment throughout 2013.