Patchy price variations of residential property in Australia’s capital cities resulted in an overall median price increase in the March quarter of 2014, according to the Bendigo Bank/Real Estate Institute of Australia (REIA) Real Estate Market Facts.
The weighted average capital city median price increased 1.9% for houses and 1.7% for other dwellings during the quarter.
The weighted average median house price for the eight capital cities is now $606,517 with Sydney, Melbourne, Adelaide, Canberra, Hobart and Darwin all contributing to the rise.
Brisbane and Perth fell by 1.1% and 1.6% respectively.
At $782,973, the Sydney median house price is the highest of the capitals. Hobart remained the lowest priced at $385,000, which is 36.5% lower than the national weighted average.
Compared to the same time last year, the difference is much starker. The weighted average median house price rose 13.1% over that period.
For other dwellings, the weighted average median price for the eight capital cities was $483,230 over the March 2014 quarter and that’s a 9.5% rise from a year earlier.
If history repeats itself then expect the Hobart property market to become very attractive to investors that are priced out of the main land capital cities. So if you are thinking about investing in Tasmania then it may be better to do so sooner than later.
When the second wave of new developments that where sold off the plan are completed in the coming 18 months we will see a further increase in the median prices particularly in Sydney. The prices are not reflected until the property is completed and settled after which time the sale price is recorded at the Titles office.
The rental market tightened further and as a result, median house rents increased in most of the capital cities and solid increases were also seen in rents for other dwellings. This is mainly a result of potential buyers being priced out of the market and unable to buy a property. Expect this to change for apartments once the off the plan apartments are completed in the coming 18 months which will have an impact on rental prices and vacancies in areas such as Homebush, Carlingford, Alexandria, Hornsby, Kellyville, Baulkham Hills and other such areas where larger volumes than normal new properties are being completed.