Value of Real Estate Rises Across Australia
Real estate across most of Australia has experienced a rise in value, new figures reveal.
Statistics from RP Data and Rismark's Hedonic Home Values Index found a 2.8 per cent increase in combined capital city prices over the March quarter, representing a 4.7 per cent gain since May last year.
Real estate in Sydney remained the highest value in the country, with median prices reaching $550,500 in the state, following a 1.5 per cent jump.
This brought Sydney's quarterly increase to 3.4 per cent, while year on year it experienced 3.8 per cent growth.
In percentage terms, real estate in Hobart enjoyed the biggest gains – climbing 6.1 per cent over the March quarter to $332,500, although this was not enough to offset previous losses, leading to a 1.2 per cent annual slump overall.
Brisbane and Melbourne properties both edged forward in value, advancing one per cent and 0.8 per cent to $415,000 and $475,000 respectively.
RP Data research director Tim Lawless said the market has experienced a 4.7 per cent bump since plummeting 7.4 per cent in May last year.
He remarked: "The most significant recoveries have been recorded across Darwin, where values have risen 13.9 per cent since bottoming out in January last year, and Perth where values are up 9.4 per cent since the market trough in November 2011."
Adelaide real estate was the only market to experience a flat month, with Rismark International chief executive officer Ben Skilbeck describing the March result as "one of the strongest" since 2010.
"Not only were there no value falls recorded across the capital cities, but, over the past three years, the all dwellings result of +1.32 per cent for the month was second only to the +1.40 per cent increase observed in September 2012," he explained.
Auction results are also positive, Mr Lawless continued, with clearance rates not falling below 55 per cent so far in 2013.
The weighted average clearance rate for capital cities has been hovering around the 60 per cent mark, he added, while properties in Melbourne and Sydney is tipping 70 per cent.
"Additionally, vendors selling their homes by private treaty have been discounting their prices by a lesser amount in order to make a sale," the expert said.
Furthermore, the time a property remained on the market was significantly lower in the lead-up to the traditionally slower Christmas and New Year periods.