March a great month for Sydney dwelling values

106Sydney dwelling values increased 15.6 per cent year-on-year to the 2014 March quarter, according to the RP Data-Rismark March Hedonic Home Value Index Results, released on April 1.

This soared above the combined capital rate, which was 10.6 per cent over the same period. The findings highlight Sydney’s continuing dominance in the Australian property market.

Quarterly trends

Combined capital city dwelling values increased by 2.3 per cent during the March quarter, representing a 3.5 per cent quarterly rise.

Such news was lauded by RP Data, which called February’s results “flat”.

With the cash rate remaining at consistently low levels, it could be that buyers are re-entering in greater numbers following the summer break and as the 2014 year gets underway.

Sydney continues to gun ahead, highlighting confidence in the city on behalf on home buyers and investors, who are eager to secure property in the city that consistently surpasses combined capital growth averages, not to mention state averages.

All capital cities recorded a hike in dwelling values between 2013’s final quarter and the March quarter, except for Perth.

Where to from here?

RP Data Research Director Tim Lawless commented on Sydney’s housing market, noting its quarter-on-quarter increase was “the most substantial increase beyond its previous market high”.

Sydney’s growth cycle began in June 2012, with much of the city’s growth occurring since June 2013, explained Mr Lawless.

Industry commentators are weighing on how long the growth cycle will last, which is certainly of interest to buyers and sellers.

The favourable quarterly growth is not unusual, noted Rismark Managing Director Ben Skilbeck.

The months of March and September tends to be stronger than other times of year, noted Mr Skilbeck.

This goes some way to explain why March performance was much stronger than February. The next question on everyone’s lips is, “what about the rest of 2014?”.

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