Sydney outpaces other capitals in market growth

29.10.13Sydney has again demonstrated why it’s such a great location for property investment, with the release of the RP Data-Rismark June Hedonic Home Value Index.

The Harbour City posted the highest home value growth out of all the other capitals, with a 15.4 per cent year-on-year increase in dwelling values. Its median dwelling price currently sits at $690,000, according to the report. This happened to also be the highest median dwelling price out of all the other capitals.

Sydney further saw an increase of 1 per cent over the quarter, and a rise of 1.7 per cent over the month.

The strength of the Sydney market was emphasised by the fact that no other capital was close to Sydney’s growth. Melbourne was a distant second with a price increase of 9.4 per cent since last year, and Brisbane came in third with a 7 per cent rise.

Sydney has made impressive gains during the current growth cycle. Since the market trough at the end of May 2012, Sydney has been the strongest performer among the capitals, achieving a capital gain of 23.1 per cent.

Combining the gross rental yield with the capital gains over the last year gave Sydney home owners a total return of 20.2 per cent.

“From a total returns perspective, Sydney once again stood out as having provided the most outstanding performance,” wrote the report.

These conditions are likely to continue into the future, said RP Data Research Director Tim Lawless in a July 1 release.

“With interest rates remaining low for the foreseeable future, it is doubtful that housing values will start to slide, at least not at a macro level,” he said.

All of this points to Sydney as a prime location for property investment for the foreseeable future. Its strong performance over the last couple of years in capital gains, which from all indicators looks like it may well continue for some time, means buyers who purchase real estate now could make quite a return both renting and selling the property.

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