According to CoreLogic, there is a capital growth of 10.5% across the combined capital cities over the year to 31 July. The quarterly price also increased albeit slowly to 2.2% in July, compared to 3.6% in February.
Sydney houses and units remained to be strong at 12.3% and 10.3% increase, respectively, as do Melbourne houses accelerating to 17.2%. Melbourne units, however, have lagged at 4.6%. The median capital city dwelling price comes at a record high of $625,000.
After APRA’s crackdown on investor lending, there was a return to annual rental price growth, which was driven by Sydney at 4.5%, Melbourne at 4.1%, Hobart at 6.2% and Canberra at 8.4%. These gains offset the declines of Perth and Darwin.
Perth seems to be almost at the bottom of its market cycle as prices ease by -0.3% over the quarter to July.
Prices have dropped by -10.2% since it peaked in 2004.
Listing numbers in Perth have declined, as did its transaction volumes at -2,500 per month a floor. Dwelling supplies show that plenty of new dwellings still need to be occupied.
What can you do during this period of slow growth?
It is important to seek professional advice in navigating the different market conditions in Australia. Chan & Naylor does not sell properties so it remains unbiased. We would love to help you whether you are a beginner or seasoned property investor.
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Chan & Naylor Group has national offices in Brisbane and Capalaba in Queensland, Melbourne and Moonee Ponds in Victoria, East Perth in Western Australia, and South West Sydney, Parramatta, Pymble, North Sydney, and Sydney in New South Wales.
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