Prices continue to surge in bigger cities

By Staff Reporter

Sydney and Melbourne investors have enjoyed massive gains since the GFC, even as prices in other cities have grown at around the inflation rate.

Sydney has experienced a 57 per cent rise in median property prices since the start of 2009, according to CoreLogic RP Data. Melbourne has also grown 50 per cent.

Those gains far exceed inflation, which increased by 14.9 per cent between 2009 and 2014.

Three other capital cities beat the inflation rate, with Darwin up 24 per cent, Canberra up 18 per cent and PerthPerth, TAS Perth, WA up 17 per cent over the time period.

However, there was gloomier news in the other three capitals. Adelaide rose 10 per cent and Brisbane rose 9 per cent, while Hobart remained unchanged.

Meanwhile, Australia’s two smallest capitals are the best place for rental yields, according to CoreLogic RP Data.

Darwin house yields currently sit at 6.0 per cent, while units are returning 5.9 per cent.

Hobart is the second-best performing capital city for rental yields when it comes to both houses and units, with houses returning 5.2 per cent and units 5.8 per cent. 

Brisbane yields are currently 4.4 per cent for houses and 5.5 per cent for units, while Canberra offers investors 4.2 per cent for houses and 4.9 per cent for units.

Adelaide houses have gross returns of 4.3 per cent. Units in the city are slightly higher at 4.7 per cent. Perth houses are returning 4.0 per cent and units are at 4.7 per cent.

Sydney is the second-worst performer for yields for both houses and units, offering returns of 3.5 per cent and 4.4 per cent respectively. 

Melbourne, the lowest-yielding city has gross rental yields of 3.2 per cent for houses and 4.2 per cent for units. 

CoreLogic RP Data head of research Tim Lawless said as capital gains continue to run strong at the combined capital city level, rental markets remain weak. Weekly rents have hardly moved over the past year - up just 1.7 per cent over the past 12 months, he said. 

"With dwelling values rising at nearly five times the pace of rents, we are seeing a consistent deterioration in rental yields," he said. 

Prices continue to surge in bigger cities
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%