Two releases by Australian property research houses support an increasingly optimistic outlook for residential property values across Australia, with markets clawing back all the losses of 2008.
The National Home Values Indices released today by RP Data - Rismark International reports a 4.5% increase in Australian home values for the first half of 2009. This follows a June quarter where home values rose in every state.
Home values rise in all capital cities
|June Qtr||Value Rise||
Source: RP Data - Rismark International
"The recovering residential environment comes as consumer and business confidence records large improvements," said Tim Lawless, national research director at RP Data. "Housing finance approvals are trending upwards for both owner occupiers and investors, and auction clearances are averaging more than 70 percent across the nation."
Housing data released by Australian Property Monitors supported an improved outlook reporting a 3.3% rise in house prices nationally for the June quarter. Housing values have recovered the losses of 2008, and are expected to continue rising in the second half of 2009.
"With population growing strongly and strong housing finance figures yet to translate into a significant rise in new building starts, all indicators point to house prices continuing to rise in the second half of 2009 and well into 2010," said Matthew Bell, economist for Australian Property Monitors.
"While low interest rates, flat prices and First Home Owner Grants supported the affordable end of the market through the end of 2008 and early 2009, it's been the upper end of the market that's driven the strong growth in the major capitals in the June quarter," has said.
According to RP Data-Rismark International, yields have flattened as a result of the rise in home values, with annualised yields for units (5.3%) higher than those for house (4.4%). On value growth, houses (+2.4%) outperformed units (+1.2%) during the June quarter.