Sydney one of few capitals with dwelling value growth

23.10.13Sydney was just one of three cities to record an increase in dwelling values last month, according to the latest RP Data – Rismark Home Value Index Release, which was made available on March 3.

This result spells good news for property investors in the New South Wales capital.

Not only are properties in Sydney seeing strong capital growth, but the steady rise in house values may result in more people electing to rent rather than buy, increasing the demand for quality rental properties.

National trends

On a national scale, combined capital dwelling growth halted last month, with no growth between January and February.

This is on the back of “eight successive month-end increases where dwelling values rose by 10 per cent,” noted RP Data.

Australia saw strong growth in dwelling prices during 2013, but the pause in growth last month could highlight an impending slowdown in capital value growth.

Even so, commentators are optimistic for the time being.

“The February market results are in stark contrast to earlier readings where capital city dwelling values moved 2.6 per cent higher over the past three months,” announced RP Data’s Tim Lawless.

“The likelihood is that the weak reading for February is an adjustment from the strong readings in December and January rather than the beginning of a flat to negative growth phase across the macro level housing market.”

Despite this figure nationwide, it’s obvious that the NSW capital continues to buck trends.

Sydney is still the city that investors should direct their attention to for the time being, with Rismark International CEO Ben Skilbeck calling it a “standout performer”.

“When looking at individual capital cities, the Sydney market has had a surprising run of nine successive month-end increases totalling 14.1 per cent. In keeping with what other capital cities have experienced, we would have expected some dips along the growth trajectory over a nine month period,” stated Mr Skilbeck.

With Sydney gunning ahead, investors may want to expand their property portfolio in the city.

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