news

Cheapest suburbs best performers

By webmaster

Dwellings located in the cheapest pockets of Australia’s capital cities are performing the strongest of all capital city market segments, according to the latest RP Data/Rismark Hedonic Home Value Index.

The latest index found Australian dwelling prices continued their decline in April, with capital city dwelling values declining 0.3 per cent, seasonally adjusted, for the month and 1.2 per cent for the quarter.

In the 12 months ending April, Australian capital city values are now down 1.5 per cent, seasonally adjusted.

According to RP Data research director Tim Lawless, sinking top end suburbs contributed significantly to the result, while cheaper suburbs largely held their ground.

Over the year to end April, dwellings in the most expensive 20 per cent of capital city suburbs recorded a 5.4 per cent decline in values.

In contrast, values in the middle 60 per cent of suburbs were down by only 0.9 per cent while dwellings in the cheapest 20 per cent of suburbs hardly moved, slipping just 0.5 per cent for the year.

“The solid performance of cheap suburbs runs against the grain of poplar claims that default rates are rocketing up amongst first time buyers, which the RBA recently rejected,” Mr Lawless said.

The luxury end of the housing market was showing volatility, he said.

“During the growth phase of the cycle the most expensive homes realised the highest capital gains. Yet as the market cools, premium home values seem to be losing steam the fastest.”

Should the RBA increases interest rates another one of two times this year, which is widely predicted, RP Data and Rismark forecast that prices will remain soft throughout 2011 and likely register some modest losses.

Cheapest suburbs best performers
SPI logo
Thank you.

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

We will be in contact with you shortly.
Opps.

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
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%