Sydney’s home values maintain growth

Sydney-has-the-greatest-opportunity-for-capital-growth-_157_6001953_0_14101789_300For those property owners who are considering putting their home up for sale, the latest data from CoreLogic RP will affirm Sydney’s resilience as the ideal locale. While the findings indicates that house price momentum has slowed markedly across the combined capital cities over the past five years, values in the New South Wales capital have continued to climb.

The CoreLogic RP Data Home Value Index has been measuring home values since across Australia since it was first published in December 1995. Between this time and December 2014, the total percentage increase of home values in the capital cities have risen an impressive 299.3 per cent.

The five years to December 2004 alone recorded the strongest increase in value growth with an astounding ascent of 77 per cent. Hobart, Brisbane and Canberra were the standout performers over this period, followed by Sydney, Melbourne and Darwin.

However, the data reveals that this growth has trailed off significantly in recent years. Although mortgage rates have been slashed to facilitate property purchases, house prices have continued on their steady decline. The 2009 financial crisis appears to have been a turning point for many of the capitals, with home value growth outside of Sydney and Melbourne visibly limited after this time. Indeed, in the most recent five years to December 2014, home values only rose by 19.7 per cent.

The two cities that have been clear front runners are Sydney and Melbourne. Data suggests properties in these locations have the strongest opportunities for capital growth, with appreciation of 35.5 per cent and 20.3 percent respectively in most recent years.

Sydney may have seen the most substantial value recently but the report indicates that this has not always been the case. Between December 2004 and 2009 home values only grew 13.1 per cent  – the weakest performer of all the state capitals. Nonetheless, this only highlights the impressive upward trajectory of Sydney’s value over the past five years alone.

With CommSec’s latest “State of the States” report indicating that population growth will continue to drive demand – albeit at a lesser rate than previous years – these prices are expected to rise even further.

Having clearly proven itself a haven for those looking to sell their property, talk your Sydney real estate agent about how value increases will affect your sale.

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