Sydney property prices went up by 30% while Darwin house prices increased by 92% and prices in Melbourne rose 61% in the past 5 years. Hobart had median price increases of 31% in the five years to the end of September 2010, RP Data’s property pulse report showed.
Across Australia combined property values increased by a total of 41 per cent for houses and 42 per cent for units over the past five years at an average annual increase of 7 per cent for houses and 7.3 per cent for units.
”In dollar terms, house values have increased by a total of almost $140,000 over the last five years and unit values have increased by approximately $123,000,” the report said.
In terms of percentage increase Sydney underperformed from 2004 to 2009. However because Sydney property prices were already considerably higher than the rest of the country so in terms of dollar value Sydney might outperformed.
It was a similar picture with house rents, which recorded the greatest increases in Darwin, up 77 per cent, and Perth, up 60 per cent, with growth of just 34 per cent in Sydney. With unit rents, Sydney’s tight housing market saw rental growth increase by 43 per cent compared with 40 per cent in Melbourne and 41 per cent in Brisbane.
The report predicts fairly flat growth in property values while rents and yields will improve by an increase above the consumer price index for the next 12 months, especially in Sydney.
So should we investigate buying overseas…like America…..until the Aus market recovers? I have been investigating a company that is advertising USA property…Am seriously considering it!