New research shows a slowdown in capital growth being experienced by capital city property markets across Australia... Sydney's eastern suburbs could attract apartment attention...
Capital growth slowdown looks set in
New research from the Australian Bureau of Statistics has highlighted the slowdown in capital growth being experienced by capital city property markets across Australia.
According to the ABS’ Residential Property Price Indexes for the September Quarter, the weighted average price index for residential properties rose by 2% during the three-month period, down from the 4.7% it increased by during the June quarter.
In the year to September, the index rose 10.7%, with Australia’s residential real estate now estimated to be worth nearly $5.9 billion.
According to the ABS, price indexes in Sydney (3.1%), Melbourne (2.9%), Brisbane (1.3%), Adelaide (1.2%), Canberra (1.3%) and Hobart (0.5) rose over the quarter.
Over the period price indexes fell in Darwin by 0.4% and Perth by 2.4%.
Annual figures show an identical story for, with prices in the 12 months to September increasing in Sydney (19.9%), Melbourne (9.9%), Canberra (4.0%), Brisbane (3.8%), Adelaide (3.5%) and Hobart (1.7%).
Prices fell in Darwin and Perth by 1.2% and 1.8% respectively.
"Whilst the quarterly growth in Sydney has slowed from the June quarter, through the year house prices in Sydney have risen 21.9% and attached dwelling prices have risen 15.8%, both the largest annual rises of all cities," ABS spokeswoman Robin Ashburn said.
While Ashburn said Sydney has been by far and away the biggest rises over the past year, it might be time to for people to get used to more conservative growth trends.
According to the State of the Market report released yesterday by Domain, Sydney is set to lose its title as the nation’s capital growth leader, with Melbourne to take over.
However the investors in the Victorian capital shouldn’t expect to enjoy the same conditions in 2016 that Sydney enjoyed in 2015, with prices predicted to grow by only 5%.
Sydney's eastern suburbs could attract apartment attention
While inner south suburbs such as Green Square and Zetland have become Sydney’s apartment hot spots in recent years, a major real estate service firm has claimed developers and investors are now starting to look east.
According to real estate service firm CBRE, the recent sales of two boarding houses in Bondi Junction illustrate the fact that people are looking to gain a foothold in the area.
The two properties, on Ben Eden Street and Old South Head Road, in Bondi Junction both consist of studio apartments and sold from more than $2.2 million.
Tony Braham, of CBRE's metropolitan investment properties team, said there was strong competition for the blocks, with buyers recognising their earning potential.
“The campaign saw over 108 qualified buyers register their interest in these Bondi Junction properties, with investors attracted to the significant earning potential of the sites,” Braham said.
According to CBRE, the fact that the two sites are covered by R3 Medium Density Residential zoning controls, which gives them future development potential, likely helped the properties reach there sale price as rising house prices in Bondi Junction make apartment living a more attractive option.
“We are witnessing an increasing demand for apartment living in suburban markets, particularly in prestigious suburbs such as Bondi Junction where high medium house prices inhibit freestanding home ownership,” CBRE metropolitan investment properties team member Simon Lytton said.
According to figures from CoreLogic RP Data, the median house price in Bondi Junction sits at $1,625,000, a figure that could rise even further given the predictions that have been made for Sydney’s east in 2016.
New research from the Australian Bureau of Statistics has highlighted the slowdown in capital growth being experienced by capital city property markets across Australia.
According to the ABS’ Residential Property Price Indexes for the September Quarter, the weighted average price index for residential properties rose by 2% during the three-month period, down from the 4.7% it increased by during the June quarter.
In the year to September, the index rose 10.7%, with Australia’s residential real estate now estimated to be worth nearly $5.9 billion.
According to the ABS, price indexes in Sydney (3.1%), Melbourne (2.9%), Brisbane (1.3%), Adelaide (1.2%), Canberra (1.3%) and Hobart (0.5) rose over the quarter.
Over the period price indexes fell in Darwin by 0.4% and Perth by 2.4%.
Annual figures show an identical story for, with prices in the 12 months to September increasing in Sydney (19.9%), Melbourne (9.9%), Canberra (4.0%), Brisbane (3.8%), Adelaide (3.5%) and Hobart (1.7%).
Prices fell in Darwin and Perth by 1.2% and 1.8% respectively.
"Whilst the quarterly growth in Sydney has slowed from the June quarter, through the year house prices in Sydney have risen 21.9% and attached dwelling prices have risen 15.8%, both the largest annual rises of all cities," ABS spokeswoman Robin Ashburn said.
While Ashburn said Sydney has been by far and away the biggest rises over the past year, it might be time to for people to get used to more conservative growth trends.
According to the State of the Market report released yesterday by Domain, Sydney is set to lose its title as the nation’s capital growth leader, with Melbourne to take over.
However the investors in the Victorian capital shouldn’t expect to enjoy the same conditions in 2016 that Sydney enjoyed in 2015, with prices predicted to grow by only 5%.
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Sydney's eastern suburbs could attract apartment attention
While inner south suburbs such as Green Square and Zetland have become Sydney’s apartment hot spots in recent years, a major real estate service firm has claimed developers and investors are now starting to look east.
According to real estate service firm CBRE, the recent sales of two boarding houses in Bondi Junction illustrate the fact that people are looking to gain a foothold in the area.
The two properties, on Ben Eden Street and Old South Head Road, in Bondi Junction both consist of studio apartments and sold from more than $2.2 million.
Tony Braham, of CBRE's metropolitan investment properties team, said there was strong competition for the blocks, with buyers recognising their earning potential.
“The campaign saw over 108 qualified buyers register their interest in these Bondi Junction properties, with investors attracted to the significant earning potential of the sites,” Braham said.
According to CBRE, the fact that the two sites are covered by R3 Medium Density Residential zoning controls, which gives them future development potential, likely helped the properties reach there sale price as rising house prices in Bondi Junction make apartment living a more attractive option.
“We are witnessing an increasing demand for apartment living in suburban markets, particularly in prestigious suburbs such as Bondi Junction where high medium house prices inhibit freestanding home ownership,” CBRE metropolitan investment properties team member Simon Lytton said.
According to figures from CoreLogic RP Data, the median house price in Bondi Junction sits at $1,625,000, a figure that could rise even further given the predictions that have been made for Sydney’s east in 2016.
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