It’s the end of the month and time for the first round of reports on the state of our property markets.
Today Dr Andrew Wilson, chief economist from Australian Property Monitors reported a rebound of our housing markets in 2012.
Domain reported the following:
Australia’s housing market bounced back as expected in 2012 with the median house price rising by a solid 2.1 percent over the year. All capital cities recorded growth in median house prices over the December quarter for the first time since the March quarter 2010.
Solid house price growth was reported by most major capitals over the quarter with Sydney house prices up by 2.0 percent, Melbourne up 2.4 percent and Perth up 2.5 percent. Although Brisbane house prices increased by just 0.3 percent over the quarter this was nonetheless significant as it signals a revival in activity after a lengthy period of price falls.
Darwin, Canberra and Hobart all recorded solid house price growth over the quarter up by 2.7 percent, 2.1 percent and 4.7 percent respectively. Adelaide house prices however rose by a modest 0.8 percent.
The Perth housing market was the top performer of all the major capitals over 2012 rebounding strongly to rise by an impressive 6.1 percent. Only Brisbane down 0.5 percent and Adelaide down 0.6 percent failed to record an increase in median house prices over 2012.
Sydney has again clearly illustrated the resilience of its housing market with house prices rising by 3.4 percent over 2012. Home buyers pushed the Sydney median house price over $650,000 for the first time to a record $656,415 over the December quarter. All other capitals cities remain below their previous median house price peaks although on current trends Perth, Canberra and Darwin can be expected to achieve their record house prices sometime in 2013.
What about apartments?
The unit market also put in a solid performance in 2012 with the national median unit price rising by 2.1 percent over the year. This rise reflected the strong performance of the Sydney unit market where median prices rose by 5.6 percent over 2012 to a record $475,314 over the December quarter.
Melbourne recorded its first quarterly rise in median unit prices for 2 years up by 1.0 percent however prices remain 2.2 percent down over the year. Brisbane unit prices weakened over the December quarter falling by 2.7 percent to be down 3.2 percent over the year. Perth unit prices however rose by 3.4 percent over the quarter to be up by 6 percent over 2012.
Sydney remains the most expensive of all the state capitals for both houses and units with Adelaide continuing to just edge out Brisbane as the most affordable of the mainland capitals at $432,309 for houses.
With confidence in capital city housing markets generally restored, buyer activity is set to continue to rise through 2013. Although local factors still predominate housing markets, the general improvement to affordability and confidence as a consequence of record low interest rates will fuel increased buyer activity and confidence.
Our markets are segmented:
As has been the case in 2012 activity will however remain mixed and patchy both between capital city markets and sub-markets. Much will depend on the direction of local economies as it is no coincidence that the better performing housing markets in 2012 reflected better performing economies – particularly in regard to unemployment levels.
With a rising stockmarket and an improving international outlook, the general economic landscape and prospects remain optimistic which is unequivocal good news for Australia’s recovering housing markets.
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