Australian property prices tracking along
Property values across Australia’s capital cities have increased by an average of 40.5 per cent for houses and 42.2 per cent for units over the last five years.
According to the latest research by RP Data, this growth, on an average annual basis, is equivalent to 7.0 per cent for houses and 7.3 per cent for units.
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In dollar terms, house values have increased by a total of almost $140,000 over the last five years and unit values have increased by approximately $123,000.
Five years ago, house values were 18 per cent greater than unit values and as at September 2010 the differential was recorded at 17 per cent indicating that the price differential has remained relatively consistent over the period.
With median house prices currently recorded at $485,000 and units at $415,000, affordability factors have likely contributed to the superior performance of units to houses over the period.
Over the same period rental rates have also ramped up and similar to the capital gain performance, the growth has not been uniform from year to year. Between September 2005 and the end of 2008, rental rates were typically trending upwards at the rate of almost 11 per cent year on year. In 2009 capital city rents increased by just 0.9 per cent and we are now seeing the first evidence of rental growth once again returning to the market.
