Data recently released by CoreLogic shows that home values for capital cities in Australia increased by 2.8% in July. In the twelve months leading up to July the value of the real estate market in the country grew by half a trillion dollars.
Price gains in Melbourne have surged ahead of Sydney during the past three months, rising by 6.1% compared to 5.4% in Sydney. The article in news.com.au points out that real estate market in the country show two tier growth, with both Melbourne and Sydney way ahead of other markets.
Over the past three years home values in Sydney have increased by 48%, while home values in Melbourne have risen by 32%. In comparison every other capital city in the country has seen growth of less than 13%. The most recent weekly report from CoreLogic RP Data showed that average prices of property in the mainland state capitals increased by 0.7%, rising by 0.8% in Sydney and by 1.2% in Perth. Sydney remains the most expensive place in the country to buy real estate.
Although property prices may be rising in most cities, the rate of rental growth is not keeping pace and has declined to a new record low. Rental yields have increased by just 0.9% during the past year, which is the slowest rate on record. Over the past twelve months rents in Sydney have increased by just 2.5%, while house values have increased by 18.4%. The only city where rental yields have kept pace with house values is Hobart.
Over the past three months the best performing city was Melbourne where values increased by 6.1%. In comparison, values fell during the same period by 3.0% in Darwin. The highest rental yields were for Darwin with a gross yield of 5.7% and in Brisbane with a gross yield of 5.5%. Real estate in Melbourne provided the lowest rental yield, with a gross rental yield of 3.0% for houses and 4.1% for units.
The most expensive city is Sydney with a median price of $790,000, while the most affordable city to buy property in is Hobart with a median price of $305,000.
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