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Property Outlook for October 2014

With the traditionally hot spring selling season in full swing, now could be the perfect time to purchase your dream property.


With the traditionally hot spring selling season in full swing, now could be the perfect time to purchase your dream property.

Historically speaking, spring is always a very active time for buyers as more sellers tend to put their properties on the market – and it seems this year is set to be no different.

Listings are expected to spike throughout spring as sellers look to sell their property before the festive season kicks in.

As a result, potential buyers should be able to enjoy the benefits associated with an increased level of stock available.

But while there will be more properties up for sale, potential buyers should anticipate strong competition from others who are looking to take advantages of the historically low rate environment.

Indeed, the property market is already incredibly hot, with prices climbing across the combined capital cities month on month.

In addition, house and unit sales were up in every state and territory (bar Western Australia and the Northern territory) year on year.

According to new research conducted by RP Data, property sales were up 12.9 per cent in New South Wales over the course of the 2013/14 financial year in comparison to the year before.

In Victoria, sales were up 7.5 per cent year on year, while Tasmania, Queensland and South Australia saw sales grow by 21.3 per cent, 14.8 per cent and 9.3 per cent respectively.

This dramatic lift in property sales across most states in Australia shows just how strong the housing market is at present – and it is little wonder why.

Interest rates continue to sit at all time lows and it is becoming increasingly likely that rates will continue to stay on hold for some time yet.

For those who are considering purchasing property in the near future, it is important to do your due diligence and understand the key statistics of the area you wish to purchase in.

By taking the time to understand the area in which you wish to purchase, you will be able to determine not only whether or not you can afford to buy in your ideal area, but whether this particular area meets all of your needs – including capital growth and rental yield requirements.

Your local Mortgage Choice mortgage broker can tell you more about the area in which you wish to purchase including its median price, capital growth potential and average rental yield.

In the meantime, we have provided you with a snapshot of what is happening in each of the major capital cities.

SYDNEY:

Median dwelling price: $650,000

Gross rental yield houses: 3.6%

Gross rental yields units: 4.5%

Dwelling value growth YOY: 16.2%

MELBOURNE:

Median dwelling price: $523,750

Gross rental yield houses: 3.2%

Gross rental yields units: 4.2%

Dwelling value growth YOY: 11.7%

BRISBANE:

Median dwelling price: $445,000

Gross rental yield houses: 4.5%

Gross rental yields units: 5.4%

Dwelling value growth YOY: 5.4%

ADELAIDE:

Median dwelling price: $390,000

Gross rental yield houses: 4.2%

Gross rental yields units: 4.8%

Dwelling value growth YOY: 5.9%

PERTH:

Median dwelling price: $512,500

Gross rental yield houses: 4.1%

Gross rental yields units: 4.8%

Dwelling value growth YOY: 3.5%

HOBART:

Median dwelling price: $310,000

Gross rental yield houses: 5.2%

Gross rental yields units: 5.4%

Dwelling value growth YOY: 2.8%

DARWIN:

Median dwelling price: $510,000

Gross rental yield houses: 5.9%

Gross rental yields units: 5.8%

Dwelling value growth YOY: 5.4% 

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