Ongoing Recovery Seen with Dwelling Values in Major Australian Capitals on the Rise, MYRP Data Statistics Show
Leading property resource MyRPData reports a 3.8 percent increase in capital city dwelling values, which observers say can be the starting point towards recovery for the Australian property market.
Sydney, Australia (PRWEB) July 23, 2013
Dwelling values in Australia’s capital cities rose by 3.8 percent in the first half of 2013, the latest figures from the MyRPData-Rismark Daily Home Value Index revealed. The most remarkable growth pointed to the 1.9 percent increase recorded throughout June which was more than enough to reverse the 1.7 percent dip in the market across April and May.
Using a hedonic regression methodology that addresses the issue of compositional bias associated with median price and other measures, the RP Data-Rismark Hedonic Home Value uses up-to-date sales data and specific attributes of individual dwellings (land area, number of rooms, geographical context) to come up with timely insights, market dynamics and an accurate overview of current housing conditions.
A huge part of the results were driven by the strong performances of Sydney and Adelaide, as both showed a rise of 1.2 percent. Sydney remains the most expensive city with its median dwelling price of $580,000, while Hobart is now the most affordable city with a median dwelling price of $316,000. Rental property investors would be interested to know that Darwin rental properties revealed the highest rental yield, with the rental insights report showing a 6.2 percent gross rental yield for Darwin houses and units.
According to RP Data research director Tim Lawless, this is a bit of good news that can spell a positive outlook for the housing market and a development that property investors as well as agents, valuers and brokers have long been waiting for. He said that while conditions are still far from ideal, this movement can be counted on to bring a much needed boost to the market – and to investors’ confidence.
“Consumer confidence also dipped over April and May before recording a rise in June, data on labour markets is jumpy and housing finance data shows hardly any improvement in the average loan size. If confidence levels remain high and labour markets continue to show a low rate of unemployment then we would expect that home values will continue to trend higher, albeit at a relatively measured pace," he said.
Mr. Lawless said that there are several socio-economic factors that contributed to this positive growth, but the two most contributing factors most likely include stronger equity market conditions and a growing interest in premium-priced housing indicated in their suburb sales report. “Sydney’s most expensive suburbs have seen dwelling values rise by 4.8 per cent over the past six months compared with a 3.2 per cent rise in values at the most affordable end of the market and a 4.6 percent gain across the broad middle priced segment of the Sydney market," he said.
The RP Data-Rismark Hedonic Home Value is considered a main point of reference of property information for real estate investors and professionals in the country. Ben Skilbeck, CEO of Rismark International, says its fundamental strength lies in their process of tracking the value of the entire housing market day after day. "While the underlying mechanics to achieve the daily index are complex, its accuracy is proven through its audited performance over time. In essence, on each day of calculation the index simply uses all the available data in the marketplace on that day, including sales and property attributes information, to determine the changes in value of each property comprising the market,” he says.
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