Archive | January, 2014

RP Data national auction review

Investors face choice between yield and capital gain

In a recent blog I looked at the relative performance of Melbourne investment property from a rental yields perspective (view blog). Examining yields on a suburb basis provides an interesting metric for investors to consider; the best yields are actually found in the most affordable suburbs. Of the 10 suburbs with the highest rental yield […]

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Are first home buyers willing to sacrifice lifestyle for housing?

Last year (according to the RP Data-Rismark Home Value Index), capital city home values rose by 9.8%, creating further affordability pressures for those segments of the market who are most price sensitive; the younger aged cohorts and first time buyers.  Our daily index data shows that home values have continued their strong pace of growth […]

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Victoria Market: Moderate increases in rental costs over last year

Melbourne renters have seen only moderate rises in rents over the past year, especially when compared to Sydney. At the same time investors have seen static yields but potentially benefited from improved capital growth. Over the past year the median weekly rent for a house in Melbourne has risen by $10 and by $8 for […]

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Change in values between September 13 Q and December 13 Q - Houses

Melbourne housing values rise over 2013

In the December quarter last year the median value of a house in Melbourne rose by 2.6 per cent to $542,053. Over the last year the increase was 10.7 per cent from $489,696. A similar increase was recorded for units. The median value of a unit rose by 2.3 per cent to $442,043. Over the […]

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Inflation is surprisingly strong and home values (adjusted for inflation) are still below their previous peak

The Australian Bureau of Statistics (ABS) released the Consumer Price Index results for the December 2013 quarter earlier today.  The December results provide a timely summary of consumer price rises up to the end of last year. Headline inflation was recorded at 0.8% over the final quarter of the year and was 2.7% over the […]

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Victoria housing market: Very few sellers in Knox record a loss

The latest version of RP Data’s Pain and Gain report showed that as we get closer to a new peak in dwelling values the proportion of sellers making a profit on sale is increasing. Interestingly some of the best outcomes have been recorded in suburbs around 20 km away from the Melbourne CBD. The report […]

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Where have the Victorian first home buyers gone?

Where have the Victorian first home buyers gone?

One of the most perplexing market trends right now is the substantial drop in first home buyers in Victoria. According to ABS Housing Finance data, only 12.2 per cent of loans were given to first home buyers in November 2013. This compares to a 20 year average of 21.4 per cent and follows October which […]

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Housing finance data shows demand for mortgages continues to climb

Housing finance data for November 2013 was released by the Australian Bureau of Statistics today.  The data indicates that the strong demand for housing finance continued in November however, first home buyer activity slumped to new record lows as they continue to be squeezed out of the market by subsequent purchasers and investors. According to […]

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Unit proportion by city

Dwelling approvals are rebounding quite nicely thank you very much!

Dwelling approvals data for November released by the Australian Bureau of Statistics (ABS) earlier today showed that the Reserve Bank (RBA) are getting their wish.  With interest rates low and mining investment topping out, the RBA were looking to the housing sector to pick up some of the slack and that is exactly what it […]

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