PROPERTY -- New data indicates price growth surge297 people have read this article
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| Tuesday, 31 August 2010 |
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By: Belinda Luc Despite another fall in housing finance in the month of June, low property growth in most capital cities and a low number of building approvals, a recovery of the property market is on the horizon, based on a broad analysis of the latest figures. In June, owner occupied finance fell 3.9 per cent from the month prior, according to the ABS. Building approvals were down in June by 3.3 per cent overall, according to the ABS, with private housing development hit the hardest. But these factors do not mean that property market growth will continue to slide in the months to come. In fact, there are a few positive signs that indicate that some areas will be on a steady growth path in the 12 months to come. Westpac senior economist Andrew Hanlan said the latest slump in price growth has been "expected" in the wake of the RBA's interest rate normalisation strategy and the recent dip in consumer confidence. Westpac's consumer sentiment index in August showed renewed consumer confidence, with a reading of 119.2 compared to 113.1 in July. Further, the RBA's decision to hold the cash rate since May, strong population growth and strong employment growth are sure to continue to boost consumer confidence and borrowing over the months to follow. While lending figures dropped off in the upgrade and investor sectors in June, overall there's been an aggregate increase over the past months, indicating a steady upswing. Investor numbers fell in June by 3.6 per cent, but since January 2009 lending to investors has actually risen by 29 per cent. And further gains can be expected in response to strong rental income growth, particularly in the unit sector. Units have continued to eclipse house growth by an average of 0.3 per cent over the last five years and gross rental yields have remained remain strong at 4.8 per cent (4.0 per cent for houses). MORTGAGE INDICATORS LENDING FOR HOUSING - SEASONALLY ADJUSTED June 10: $13.386 billion Change from May 10: Decreased by 1.0% Change from June 09: Decreased by 22.4% AVERAGE NEW OWNER OCCUPIER HOME LOAN June 10: $285,300 Change from May 10: Increased by 1.3% Change from June 09: Increased by 7.9% FIXED RATE LOANS AS PERCENTAGE OF OWNER OCCUPIER LOANS June 10: 3.4% Change from May 10: Decreased by 0.1% Change from June 09: Decreased by 4.6% FIRST HOME BUYERS AS PERCENTAGE OF OWNER OCCUPIER FINANCE COMMITMENTS June 10: 16.0% Change from May 10: Decreased by 0.2% Change from May 09: Decreased by 11.1% Source: ABS BUILDING APPROVALS TOTAL DWELLING UNITS APPROVED June 10: 13,267 Change from May 10: Decreased by 3.3% Change from June 09: Increased by 13.2% TOTAL PRIVATE SECTOR HOUSES APPROVED June 10: 8,620 Change from May 10: Decreased by 3.3% Change from June 09: Increased by 13.2% TOTAL PRIVATE SECTOR OTHER DWELLINGS APPROVED June 10: 3,890 Change from May 10: Increased by 2.7% Change from June 09: Increased by 57.6% Source: ABS PROPERTY LATEST FIGURES BRISBANE Median house price: $475,000 Quarterly growth: 2.15% Annual growth: 9.33% Average annual growth: 11.28% Median weekly rent: $365 Gross rental yield: 4.00%
Median unit price: $380,000 Quarterly growth: 1.33% Annual growth: 6.10% Average annual growth: 8.27% Median weekly rent: $350 Gross rental yield: 4.79%
SYDNEY Median house price: $590,000 Quarterly growth: 6.26% Annual growth: 16.30% Average annual growth: 8.34% Median weekly rent: $450 Gross rental yield: 3.97%
Median unit price: $445,000 Quarterly growth: 4.71% Annual growth: 10.53% Average annual growth: 5.39% Median weekly rent: $410 Gross rental yield: 4.79%
CANBERRA Median house price: $550,000 Quarterly growth: 3.87% Annual growth: 13.04% Average annual growth: 11.79% Median weekly rent: $460 Gross rental yield: 4.35%
Median unit price: $420,000 Quarterly growth: 0.00% Annual growth: 9.27% Average annual growth: 11.42% Median weekly rent: $395 Gross rental yield: 4.89%
MELBOURNE Median house price: $490,000 Quarterly growth: 6.52% Annual growth: 17.72% Average annual growth: 9.98% Median weekly rent: $350 Gross rental yield: 3.71%
Median unit price $425,000 Quarterly growth: 3.66% Annual growth: 14.57% Average annual growth: 8.89% Median weekly rent: $330 Gross rental yield: 4.04%
ADELAIDE Median house price: $405,000 Quarterly growth: 1.25% Annual growth: 7.93% Average annual growth: 11.07% Median weekly rent: $310 Gross rental yield: 3.98%
Median unit price: $340,000 Quarterly growth: 3.82% Annual growth: 8.64% Average annual growth: 11.91% Median weekly rent: $270 Gross rental yield: 4.13%
PERTH Median house price: $500,000 Quarterly growth: -1.19% Annual growth: 11.36% Average annual growth: 12.59% Median weekly rent: $380 Gross rental yield: 3.95%
Median unit price: $425,000 Quarterly growth: 0.95% Annual growth: 12.57% Average annual growth: 12.78% Median weekly rent: $325 Gross rental yield: 3.98%
DARWIN Median house price: $530,000 Quarterly growth: 2.42% Annual growth: 16.28% Average annual growth: 11.51% Median weekly rent: $510 Gross rental yield: 5.00%
Median unit price: $390,000 Quarterly growth: -5.34% Annual growth: 15.63% Average annual growth: 9.37% Median weekly rent: $410 Gross rental yield: 5.47%
Source: RP Data - Based on repeat sales indices
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