This article is from the Australian Property Journal archive
The residential property market is looking to entice investors back into the market, according to the REIA/Mortgage Choice Real Estate Market Facts March quarter 2006 edition.
According to the survey, opportunities are improving for residential property investments with rents going up in response to strong demand for rental properties.
At the same time, house prices have also risen in many capital cities.
At the March quarter, the Australian weighted average median house price was $394,431.
Western Australia was once again the standout performer. In the March quarter, median house prices in Perth jumped 5.1% to $353,000, while the vacancy rate has fallen to 1.4% in Perth led to rapidly rising rents.
REIA president Tony Brasier said growth is likely to continue in the WA housing market as long as export dollars flood into the market, creating employment opportunities, stimulating net migration, and increasing consumer demand. People are caught up in the spirit of buying, and demand is outpacing supply.
In Hobart, median house prices rose 2.2% to $282,500, while vacancy rates were at 2.2%.
Median house prices in Darwin, Canberra and Brisbane also rose 2.1% to $335,000, 1.9% to $375,000 and 0.5% to $324,000 respectively.
The vacancy rate was 3.3% in Darwin, 1.8% in Canberra and 1.5% in Brisbane.
The only cities to record a fall in median house prices were Melbourne, Sydney and Adelaide.
In the March quarter, median house prices in Melbourne fell 3.1% to $359,500, 1% in Sydney to $516,000 and 0.4% to $277,000 in Adelaide.
Meanwhile, vacancy rates were tight at 1.7% in Adelaide, 1.8% in Melbourne and 2% in Sydney.
Brasier said median weekly rents have been steadily increasing in all capital cities in response to the increased demand for rental accommodation.
“Increasing rents are expected to continue into the coming months, and will act as an incentive for investors considering a property purchase.
“While the quick profits of 2003 and 2004 are no longer available in the eastern states, long term investors have the opportunity to buy at reduced prices and take advantage of low vacancy rates and increasing rents,” Brasier said.
Median other dwelling prices up:
Hobart 18.9% to $220,000
Darwin 7.4 % to $260,000
Canberra 4.2% to $301,000
Perth 3.8% to $275,000
Melbourne 0.8% to $307,500
Adelaide 0.6% to $215,000
Median other dwelling prices down:
Sydney -1.4% to $358,000
Brisbane -1.4% to $265,500
By Kathryn O’Meara
