The CoreLogic RP Data April Home Value Index released last Monday showed a modest growth in Canberra’s dwelling values in April, with a rise of 1.2 per cent over the past month. It was an improvement from last month’s 0.8 per cent drop, but it still fell short of the combined capital cities’ average growth of 1.7 per cent.
According to CoreLogic RP Data research director Tim Lawless, housing trends were mixed across the country. However, every capital city except Perth recorded a rise in dwelling values year-to-date.
“The results show value growth moved at a faster pace compared with the final three months of 2015 when capital city dwelling values slid 1.4 per cent lower off the back of weaker market conditions in Sydney and Melbourne,” Lawless said.
Canberra recorded a 4.5 per cent year-on-year growth, with a median dwelling price of $540,000. It remains to be the third most expensive city in which to buy property after Sydney and Melbourne.
When it comes to rentals, Canberra’s gross rental yields remained at 3.4 per cent—0.2 per cent lower compared to last year.
“The low yield profile across Australia’s two largest cities, which are also the cities that attract the largest investment demand, suggests that most recent investors, despite the low mortgage rate settings, are likely to be utilising a negative gearing strategy to offset their cash flow losses against their taxable income,” Lawless said.
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