Thursday, 02 April 2020 Sydney

Property Investment Snapshot: Around the Nation::

Each region in Australia offers opportunities, which means a great deal of choice for the investor.

Adelaide continues to lead the nation in terms of capital growth with house and unit values increasing by 21.04 percent and 25.28 percent respectively. Despite the ongoing gains in property values, Adelaide houses still provide the most affordable price-tag of any mainland capital city. The median value of a house in Adelaide is now $421,478, approximately $73,000 higher than the same period last year. Strong price growth is still apparent across all regions of Adelaide; especially the more affluent inner and coastal suburbs.


Brisbane is also continuing to show solid expansion in property values with overall growth of around 3 percent for houses and units during the first four months of 2008. The value gap between Brisbane and Melbourne is becoming wider as growth in the Melbourne market has slowed considerably. At the start of 2007 house values in the two cities were virtually on par, however the stronger value growth in the Brisbane market has seen Brisbane house values now 5 percent or $24,000 higher than Melbourne’s.


Canberra has provided a solid return over the last year with an increase in property values of 13.5 percent over the year. The first quarter of 2008 has seen value growth flatten with Canberra dwelling values decreasing by half a percentage point. Price falls in some outer regions are being balanced by value improvements within the inner suburbs. This trend is leading to increasingly volatile statistics in the Canberra marketplace.


Melbourne’s overall growth rate has slowed considerably during 2008 with the first four months recording a fall in property values of 0.16 percent. A further disparity in the performance of Melbourne regions is emerging with the more affluent inner areas such as Moreland and Boroondara returning growth between 2 and 4 percent. At the other end of the spectrum is Hume City where values have fallen by 5 percent during 2008.


Darwin continues to record a solid performance with a 10 percent gain in dwelling values over the twelve months to April ‘08. The Darwin market has continued to record an impressive rate of growth during the first four months of 2008 with values increasing by 4 to 5 percent. Despite such strong growth in dwelling values, Darwin continues to record the highest gross rental yields in the nation. Rental houses are returning an average gross rental yield of 5.7 percent while units are returning an average gross rental yield of 6.2 percent.


Sydney value growth is flattening across the board, even in the traditional growth hotspots of the inner city and metro coastal regions. Six to twelve months ago we were seeing steady growth of 2 to 4 percent in the Eastern Suburbs, North Shore and Northern Beaches. 2008 has been more volatile, with a month of growth followed by a month of decline. The exception to the rule seems to be the St George – Sutherland region where value growth has been much steadier. The best performing market during 2008 has been units in South Western Sydney where buyers are opting for units and town homes instead of more expensive houses.


Perth remains as the only capital city to experience a decline during the twelve-month period to April 2008, with dwelling values falling by 1.33 percent. The median value of a Perth house is now slightly less than $500,000. The inner city unit market appears to be the safest haven in this declining market. Perth units values have decreased by 1.35 percent over the first four months of 2008, however the inner areas of Perth have defied the slow down.