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House prices record strong growth
Thursday, January 28, 2010
House prices are at all time highs in most capitals after more buying in expensive suburbs drove the strongest annual price growth in seven years.
The medium-to-long-term outlook for property prices remains strong as the population grows, incomes rise and demand for houses outstrips new supply, says an Australian Property Monitors' report.
Despite a sluggish start, 2009 ended with the biggest price growth since 2003 on a rise in activity at the top end of the market, the APM December quarterly report released on Thursday says.
Median national house prices rose 4.8 per cent in the December quarter, bringing the rise for 2009 to 12.1 per cent.
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Melbourne's prices jumped 18.5 per cent for the year, past the $500,000 mark for the first time.
Sydney's median house prices rose 12.1 per cent over the year, while Perth's annual growth was 8.7 per cent to back over $500,000, a level not seen since March 2008, APM said.
Hobart was the second strongest market nationally with median house prices rising over 14 per cent in 2009 while prices in Darwin lifted 13.5 per cent and Brisbane's 7.7 per cent.
Adelaide remains the most affordable capital after posting the slowest median annual growth for houses at 2.4 per cent.
First-home buyers sustained the market in the early part of the year, but "up-graders" and investors ultimately drove the market, AMP says.
Activity in more expensive suburbs benefited from the resilient jobs market in late 2009 and the rising share market.
"The price growth seen in the more expensive suburbs in 2009 has largely been a recovery of the price falls that have occurred since late 2007 and early 2008," APM economist Matthew Bell said.
"This top-end recovery has been completed in most capitals with median house prices surpassing pre-global financial crisis highs for the first time in the December quarter in Sydney, Brisbane, Adelaide and Perth."
Mr Bell said rising interest rates and the expiry of the first home-owner boost at the end of December would slow activity for first-home buyers.
Median unit prices in capitals did not follow the housing trend over 2009.
Darwin units were up 22.8 per cent over 2009, Perth was next with 15.8 per cent growth then Hobart with 14.6 per cent.
- Yahoo news
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