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Ben Kingsley Blog post by Ben Kingsley

Property Prices on the Up – Investors coming back….

It appears in just a couple of months that sentiment and actual property prices have come full circle, from the gloom and doom being reported back in March / April of this year.  The logical reason for this is that the data that most analysts report, such as the Real Estate institutes in each state, is up to 2 to 3 months following the actual results.  Whereby anyone who was active each week in the market could have told you that this year was starting to pick up in the marketplaces under $600,000, given the vast improvement in affordability, following the record reduction in interest rates.

Auction clearance rates in Melbourne are up at levels over 80% – which are back to the heady times of 2007, when the market was extremely hot and the local economy was firing on all cylinders’, before interest rate rises and then the GFC put the brakes on demand.

This rise is being stimulated mainly by First Home Buyers and Owner Occupiers looking to upsize into new properties, taking advantage of the overall stable conditions in the market.  Furthermore general investors, those who need a little more assurance than seasoned property investors, are starting to also look at Property again, as the overall economy is also showing early signs of improvement.

 

City

Median Dwelling Value

Annual % Change

Sydney

$529,785

3.46%

Melbourne

$443,811

3.53%

Brisbane

$432,101

-0.52%

Adelaide

$396,839

-0.68%

Perth

$468,052

-4.63%

Darwin

$444,846

14.33%

Canberra

$460,309

-0.19%

National

$468,819

1.56%

Source: RP Data – Rismark
Based on indicative May 09 figures.

ANZ’s latest property report observes that:

  • Sydney will remain in a consolidation phase, yet long term remains positive
  • Melbourne market to continue to perform solidly
  • Queensland market in consolidation mode, long term population growth should provide positive on the upside
  • Perth subdued, but once mining sector recovers, there should be some upside benefit
  • Tassie – Subdue outlook
  • SA property prices to remain in holding pattern with economic uncertainties in manufacturing sector
  • Canberra is in good shape with upside possible given shortage of stock

 

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