During the first quarter of 2009, the Australian housing market continues to challenge the cynics with the indicative capital city RP Data-Rismark National Dwelling Value Index up 1.6 per cent. The majority of growth in the residential values occurred in February with an increase of 0.90 per cent and March increase of 0.60 percent while the month of January remained flat.
RP Data/Rismark International confirmed that improvements in housing affordability are central to what appears to be the start of a slow house price recovery.
According to Christopher Joye, Managing Director of Rismark International, “This gradual recovery in Australian house prices has been driven by the 40 per cent fall in home loan rates to 5.7 per cent, which are now at their lowest levels since July 1968.”
"The ratio of total household interest payments to disposable income has fallen rapidly from 15 per cent to 10 per cent as a consequence.”
The improvement in the housing market should be observed as a positive sign by the construction sector.
Capital City house values – 3 months to end of March 2009
|
Capital City |
Value as of March 2009 |
March QoQ % |
March YOY % |
|
Sydney |
565,000 |
2.39% |
-1.85% |
|
Melbourne |
451,000 |
2.29% |
-2.17% |
|
Brisbane |
449,000 |
1.42% |
-3.42% |
|
Adelaide |
410,000 |
-0.52% |
-1.26% |
|
Perth |
473,000 |
-0.72% |
-5.95% |
|
Darwin |
477,000 |
1.59% |
6.73% |
|
Canberra |
482,000 |
1.27% |
-3.39% |
|
National |
483,000 |
1.52% |
-2.65% |
RP Data-Rismark
Capital City Unit values – 3 months to end of March 2009
|
Capital City |
Value as of March 2009 |
March QoQ % |
March YOY % |
|
Sydney |
430,000 |
2.54% |
0.91% |
|
Melbourne |
362,000 |
2.83% |
0.08% |
|
Brisbane |
330,000 |
0.41% |
-3.44% |
|
Adelaide |
336,000 |
0.36% |
-1.92% |
|
Perth |
439,000 |
-0.70% |
-8.12% |
|
Darwin |
336,000 |
6.38% |
13.63% |
|
Canberra |
375,000 |
1.69% |
-0.11% |
|
National |
392,000 |
1.97% |
-0.76% |
RP Data-Rismark
Capital City Houses and Units Rental yields –Jan to March 2009 quarter
|
Capital City |
Houses March Quarter Rental Yield |
Units March Quarter Rental Yield |
|
Sydney |
4.83% |
5.69% |
|
Melbourne |
4.25% |
4.93% |
|
Brisbane |
4.69% |
5.38% |
|
Adelaide |
4.36% |
4.87% |
|
Perth |
4.67% |
4.93% |
|
Darwin |
6.29% |
6.31% |
|
Canberra |
5.55% |
6.06% |
|
National |
4.64% |
5.39% |
RP Data-Rismark
Capital City overview- Sydney, Brisbane & Canberra
Sydney
The Jan to March 09 statistics shows Sydney is one of the best performing capital cities in terms of value growth, with houses up 2.4 per cent in value and units up 2.5 per cent over the first three months of 2009. Housing values are still $16,000 lower now than they were back at the 2004 peak highlighting the dreary performance of the last four years. Rental yields in Sydney are now the third highest in the nation at 4.83 per cent for houses and 5.69 per cent for units respectively. The boost in rental yields is mainly due to several succeeding years of strong rental growth together with fairly flat property values resulting in improved rental returns for landlords.
Brisbane
Brisbane was hit harder than many other capital cities during 2008 mainly due to prices perhaps overshooting the mark in ’07. Dwelling values increased by 25 per cent over the 2007 calendar year which was the highest annual rate of growth of any capital city during that period. Over the last 12 months Brisbane residential values have fallen 3.4 per cent across both the houses and units market. Modest growth has returned to the Brisbane market during 2009 with the first three months of year seeing house values up 1.4 per cent and unit values up 0.4 per cent. Rental returns are providing landlords with a gross yield of 4.7 per cent and units 5.4 per cent.
Canberra
Canberra dwelling values have fallen -2.7 per cent over the 12 months to March 2009, with a bounce back over the first quarter of 1.4 per cent. House values were up 1.3 per cent over the first three months of ‘09 and unit values were up by 1.7 per cent. Canberra is recording the second highest rental yields with houses returning a gross yield of 5.6 per cent and units returning a gross yield of 6.1 per cent.
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