Property values continue to rise
RP Data-Rismark February Hedonic Home Value Index shows that prices in most capital cities are still on the rise. January had shown a rise of 2% and the February index showed a rise of 1.4% over the following month.
Melbourne showed strong increases at 5.4%, but that rise did not follow throughout the rest of the state. Interestingly, Darwin showed and increase of 4.2% continuing on with the strong upward trend it has been showing for quite some time now. Hobart was the unfortunate worst off capital city with a loss of 4.2%.
RP data’s research director, Tim Lawless was rather surprised at the continued increase in most capital cities because as most know, the First Home Owners Grant has been wound right back and it was expected to see some negative changes in the market following this action. Another factor that could have had some negative effect is the raised cash rate, but neither of these seem to have stopped the continued growth.
It is encouraging to see that the city property values continue to increase and as we have said in the past, CBD property values will increase as the cities continue to grow and transportation becomes more of a problem. It has proven all around the world in capital cities that the inner property values become more and more valuable as the CBD’s expand to cope with commercial development.
Filed Under: Property News
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