Fastest Home Value Growth Since 2010
The RP-Data Rismark Home Value Index report has been released, with the strength of Sydney’s property market evident.
Last year marked the “fastest annual rate of value growth since 2010” for house values, noted RP Data’s Senior Research Analyst Cameron Kusher.
Growth in unit values was also promising for those who have invested in apartments.
Sydney was a key player in the 9.8 per cent increase in home values across capital cities, as investors, first time home buyers and current homeowners sought to maintain their interests in a booming property market.
Mr Kusher commented on the incredibly strong increases, noting that despite near-record level figures, the rate of growth was not all that surprising.
Instead, the solid growth in home values can be put down to the “low interest rate environment and the previous successive years in which home values fell,” according to Mr Kusher.
These low interest rates have provided the ideal opportunity for property investment, with less interest to pay paving the way for higher payments on the principal, subsequently driving up home equity.
While every capital city recorded rises in home values last year, Sydney came out the strongest, followed by Perth and Melbourne.
The economic powerhouse was one of only two cities where “home values are currently at record highs,” noted RP Data.
Gross yields were somewhat higher for units compared to houses in the Sydney region.
The results of the report make it clear that Sydney remains one of the strongest cities for property investment opportunities.
In fact, the investment activity in Sydney – as well as Melbourne and Perth – was at “near-record high levels,” according to RP Data.