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Strong end to first quarter of 2014

By Lachelle Ferguson
RP Data-Rismark March Hedonic Home Value Index Results National Media Release Strong end to first quarter of 2014
After a flat February result, the RP Data – Rismark Home
Value Index finished the March quarter in a strong
fashion with dwelling values rising 2.3 per cent over the
month to post a 3.5 per cent capital gain over the first
quarter of the year.
Apart from Perth, every capital city recorded a rise in
dwelling values over the past three months. Melbourne
posted the highest level of growth at 5.4 per cent over
the quarter with Sydney and Hobart also recording a
strong result in the March quarter with values up 4.4 per
cent and 4.7 per cent respectively.
According to RP Data research director Tim Lawless, half
of all Australia’s capital cities are now posting record high
dwelling values, with Sydney’s housing market showing
the most substantial increase beyond its previous market
high.
“Sydney dwelling values are now 15.8 per cent higher
than their previous peak, substantially more than
Melbourne where dwelling values are 4.7 percent higher
than their previous peak. Perth and Canberra values have
risen to be 2.9 and 1.2 per cent higher than their previous
high point, respectively,” Mr Lawless said.
Based on today’s RP Data Rismark results, dwelling values
have risen by a cumulative 15.8 per cent since the growth
cycle commenced in June 2012. Mr Lawless noted that a
majority of this growth has occurred since June last year.
“Dwelling values increased by just 2.9 per cent over the
first twelve months of the cycle, however, since last June,
values are up by close to 13 per cent. Over the long term,
I don’t believe such a strong pace of growth can be
sustained - we expect housing market conditions to cool
down as the year progresses. If the pace of capital gains
doesn’t slow, we may see higher interest rates realised
much earlier than previously expected,” Mr Lawless said.
Rismark’s managing director, Ben Skilbeck pointed out
that seasonality is likely to be having a positive influence
on the latest monthly result. “March and September
have a history of being comparatively strong seasonal
months for dwelling value changes. As such, there should
be little surprise that, in the presence of high auction
clearance rates and in the absence of any major
economic changes, the March month delivered materially
stronger performance than the flat February result.”
www.rpdata.com/indices
Capital city dwelling values post 2.3% jump over the month of March with every capital city recording a
month-on-month rise in dwelling values.
Released: Tuesday 1 April, 2014 

Highlights over the three months to March 2014 

Best performing capital city: Melbourne +5.4 per cent 

Weakest performing capital city: Perth, -0.6 per cent 

Highest rental yields: Darwin houses with gross rental yield of 5.9 per
cent and Darwin Units at 6.2 per cent 

Lowest rental yields: Melbourne houses with gross rental yield of 3.3 per
cent and Melbourne units at 4.1 per cent 

Most expensive city: Sydney with a median dwelling price of $630,000 

Most affordable city: Hobart with a median dwelling price of $338,000
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