Capital city housing values update
Australian capital city dwelling prices rose 0.6 per cent in July, following a 1.0 per cent increase during June, according to RP Data-Rismark's Hedonic Home Value Index.
The July figures mean that dwelling values are down only 0.6 per cent from the start of the year, a rebound from figures released on May 30 which showed housing prices 2.2 per cent below the calendar year starting level.
According to RP Data’s Research Director, Tim Lawless, the figures may suggest increased activity in the housing market due to advantageous financing opportunities.
“The July result, when viewed together with the positive June results, suggests housing markets may be starting to respond to lower mortgage rates, which according to the Reserve Bank of Australia's (RBA) latest Board meeting minutes are around 50 basis points below their 15-year average," Mr Lawless said.
The increases in dwelling values across capital cities were linked mainly to the Sydney and Melbourne markets: Sydney’s house prices increased by 1.2 per cent, while Melbourne recorded a gain of 1.4 per cent.
RP Data-Rismark’s data also showed that the value of units within capital cities rose by 0.7 per cent, while rental prices increased by 3.3 per cent over the first seven months of 2012.
June quarter statistics released by the Australian Bureau of Statistics revealed that Darwin had the largest increase in house prices from March to June, by means of a 5.4 per cent rise. This was followed by Sydney (1.4 %), Perth (0.6%), Adelaide (0.5%) and Brisbane (0.1%).
The only capital cities to see value decreases over the June quarter were Melbourne (-0.4%), Hobart (-0.4%) and Canberra (-1.3%).