The prices of properties in major capital cities in Australia jumped up by .3% last February. With this news, the annual rise in property values in Australia increased to 8.3% according to the latest released data. The properties include residential properties, display homes for sale and commercial residences.
The largest increase was recorded in the city of Sydney with an increase of 13.7 percent. Melbourne trailed to the second spot garnering an increase of 7.4 percent while Brisbane came in third at 5.9 percent. This was according to the report of CoreLogic RP Index.
However, the dwelling values in capital cities over the years have increased only by less than 4 percent. The growth cycle began in June 2012 and since then, the dwelling values have moved to at least 22 percent higher in all of the capital cities combined.
The head of the research team, Tim Lawless, pointed out that this phenomenon demonstrates the demand coming from the market of greater Sydney. The values in a cumulative basis reach to 34.8 percent in every cycle which is demonstrated across the largest capital city in Australia.
The latest result showed a slowing down in the growth rate of the dwelling value when being compared with the figures last December and January. As the data shows, the pace of monthly growth has slowed down from .9 percent last December then to 1.3 percent in January. Despite these draw backs, it is still foreseen that the trend will remain to be very strong especially in the cities of Sydney as well as in Melbourne.
What are the possible factors that could decrease the rate of consumer confidence in the Australian market? Analysts believe that among these factors include the weaker growth in job availability, high unemployment rate, low yields in rental, declining affordability and uncertainty in the political world.
According to the recent report, there is also a sizable amount of evidence on compressed rental yields that continue in the markets of every capital city in Australia. Last year, the gross yield in house rental in the capital cities was averaging at 4.3 percent but by February this year, the gross yield rolled down to only 3.7 percent. This was due largely to the consistently high dwelling value growth.