This is all very interesting information & its often healthy to look beyond just the Sydney property market.
All this information is courtesy of Residex .
Perth houses have had an average median capital growth rate of 8.47% p.a. for the last 20 years. Perth’s median unit values have also grown at the very impressive rate of 7.78% p.a. over this time. One could think that this dream run is about to end, however, a typical indicator of an asset bubble is usually seen via declining rental yields (as Sydney experienced in 2004 with yields of 2.4%p.a.), Perth is experiencing the opposite. In fact, rental yields in Perth are very high (around 5% p.a.) and both house and unit rents grew faster in Perth that any other capital city in Australia.
Brisbane has seen median house and unit prices drop significantly over the last 4 years but it is now interesting to note that rental yields are well over 5% p.a. (approaching 6% p.a. for units) and growing at nearly double the inflation rate. Sales activity in the Brisbane market is recovering at a double digit percentage growth rate. The drop in the median dwelling prices, relative to Sydney is starting to work in QLD’s favour.
Sydney is experiencing some relatively flat capital growth rates and record low sales activity but at the same time the rental yields are continuing to grow at levels above the inflation rate. Houses are the only area of rental yield weakness in Sydney with the median yields at 4.29% p.a. (which is still strong when compared to the last 15 year average of just over 3% p.a.).
Melbourne has seen more house sales over the last year than Sydney. We suspect this might be the first time this has ever occurred and considering the population differential it is a surprising result. Rental yields for houses are the lowest in the country at 3.88% and this may be impacting capital values that have declined by 6.23% over the last 12 months. Units are experiencing a similar outcome with declining capital values and relatively low rental yields. The below average rent and deteriorating capital situation may seem pessimistic but the silver lining is an improved affordability level.
On a per capita basis, Adelaide is the second most active market in Australia for houses (behind Perth). Affordability is the strength in this market given the median house price is only $392,500. The median rental yield is relatively low against most other capitals but historically strong at 4.69% p.a.. Median capital values have declined by 5.40% p.a. over the last 12 months but the latest positive quarter seems to indicate that this fall may have ended.
There you go!
The more information you have – the better decisions you can make…& remember if you need any specifics relating to market data email or call me anytime.