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Property prices rise as expensive suburbs recover
The more expensive suburb investors drove the national market to a 12.1 per cent median house price rise for 2009, according to Australian Property Monitors (APM).
APM's quarterly housing report for the December quarter recorded a 4.8 per cent rise in median house prices nationally, while Melbourne led the states and territories with an 18.5 per cent annual growth rate, and pushed its median price above $500,000.
Sydney's median house price experienced its third consecutive quarter of growth, this time it matched the national average of 12.1 per cent.
While first-time buyers dominated in the first part of the year, it was the upgraders and investors in the more expensive suburbs who really impacted the overall result due to the resilient jobs and recovering sharemarket.
"The price growth seen in the more expensive suburbs in 2009 has largely been a recovery of the price falls that have occurred since late 2007 and early 2008," said APM economist Matthew Bell.
"This top end recovery has been completed in most capitals, with median house prices surpassing pre-GFC highs for the first time in the December quarter in Sydney, Brisbane, Adelaide and Perth."
He said rising interest rates and the end of the First Home Owner Boost was likely to slow first homebuyer activity, but now that top end prices had recovered to pre-GFC levels, it was likely the median price growth would moderate across all sectors in the first half of 2010.
RP Data national research director Tim Lawless said the remarkable growth figures have reflected the type of properties transacted rather than actual growth in the market.
The return of interest in higher end property combined with the first homebuyer withdrawal was the real reason for this higher median price, a factor that appeared to have inflated the figure.
Rismark International chief executive officer Christopher Joye agreed that median prices were being adversely impacted by changes in the composition of buyers in the market.
"The true rates of capital gains across Australia are substantially less," he said.
Article from Australian Property Investor
Sydney's median house price experienced its third consecutive quarter of growth, this time it matched the national average of 12.1 per cent.
While first-time buyers dominated in the first part of the year, it was the upgraders and investors in the more expensive suburbs who really impacted the overall result due to the resilient jobs and recovering sharemarket.
"The price growth seen in the more expensive suburbs in 2009 has largely been a recovery of the price falls that have occurred since late 2007 and early 2008," said APM economist Matthew Bell.
"This top end recovery has been completed in most capitals, with median house prices surpassing pre-GFC highs for the first time in the December quarter in Sydney, Brisbane, Adelaide and Perth."
He said rising interest rates and the end of the First Home Owner Boost was likely to slow first homebuyer activity, but now that top end prices had recovered to pre-GFC levels, it was likely the median price growth would moderate across all sectors in the first half of 2010.
RP Data national research director Tim Lawless said the remarkable growth figures have reflected the type of properties transacted rather than actual growth in the market.
The return of interest in higher end property combined with the first homebuyer withdrawal was the real reason for this higher median price, a factor that appeared to have inflated the figure.
Rismark International chief executive officer Christopher Joye agreed that median prices were being adversely impacted by changes in the composition of buyers in the market.
"The true rates of capital gains across Australia are substantially less," he said.
Article from Australian Property Investor