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Rising capital city values recorded over the last 12 months

On Jul 02 2014
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The latest RP Data-Rismark June Hedonic Home Value Index has highlighted the rising strength ...

The latest RP Data-Rismark June Hedonic Home Value Index has highlighted the rising strength of Australia's capital city properties, which could present favourable opportunities for the purchase of potential investment real estate in the coming months. Dwelling values have been steadily increasing for a long time, with maintained growth expected to remain heading into the near future. 

Now could be the perfect time to take advantage of the market and work towards creating a nest egg of wealth for your retirement by investing in property. Over the last 12 months alone, the combined value of Australia's capital properties increased by 10.1 per cent - despite the slight decrease in values witnessed last months. 

RP Data Research Director Tim Lawless said that result was most likely seasonal, with similar results recorded during May last year as well. However, he maintained that the market was continuing to grow, albeit at a slower, more sustainable rate following the explosive increases in value seen earlier this year. 

"Looking through the monthly movements, the trend in performance is much more important. It shows that the quarterly rate of growth peaked across the Australian housing market in August last year at 4.0 per cent. Since that time the rate of capital gain has generally trended towards a more sustainable level," said Mr Lawless in a July 1 statement. 

"The slowdown in dwelling value appreciation will be a welcome relief to policy makers and those seeking to buy into the housing market. With interest rates remaining low for the foreseeable future, it is doubtful that housing values will start to slide, at least not at a macro level." 

Value increases have been spread across the nation, with Sydney undergoing the largest degree of growth - rising by 15.4 per cent over the last 12 months. Melbourne and Brisbane recorded significant levels of property value growth as well, rising by 9.4 per cent and 7 per cent respectively. 

Furthermore, the gross rental markets across the capital cities have recorded a 3.9 per cent yield for houses and a 4.6 per cent yield for units. These results could be encouraging if you're interested in buying a house or unit in the near future for their property portfolio, allowing you to earn and pay off your home loan through steady tenancy in your real estate.