No let up for Sydney’s gains

Property-prices-are-continuing-to-rise_157_6003349_0_14100813_300Sydney continues to outperform many other parts of the country in terms of its property price growth, offering reassurance to investors and anyone who has already bought property. Results of the January CoreLogic RP Data Home Value Index reveal that last month alone, prices in the Harbour City marked a rise of 1.4 per cent, the second highest in the country.

Capital gains are something any property buyer will need to take a closer look at, especially if they are going to be sure of making an informed purchase. It’s also well worth taking a glance over more historic data, especially if you want to be sure of the longevity of your investment.

RP Data revealed that Sydney held the title of the city with the highest capital gains over the past 12 months. Dwelling values in January this year were 13 per cent higher than the same period of 2013.

With the announcement that the official cash rate has been lowered further to 2.25 per cent, investors now have even more to factor into their decision making. CoreLogic RP Data Head of Research Tim Lawless explained that access to finance might become more appealing than ever.

“Lower interest rates could potentially add further fuel to the housing market, particularly the investor segment, which continues to remain strong based on recent data,” noted Mr Lawless.

“The recently released RBA [Reserve Bank of Australia] credit aggregates showed investor loan commitments rose by just over 10 per cent last year which is above the threshold that The Australian Prudential Regulation Authority, indicated they would be comfortable with.”

The new cash rate came into effect on February 4, after the RBA board determined that conditions in the national economy weren’t quite as they should be. Among the factors influencing its decision was the fear of a housing bubble forming, potentially pricing more people out of the market.

Leave a Reply

Your email address will not be published. Required fields are marked *