So What Is The Prediction For Property Prices In 2010?
Who would dare make a prediction? But what we can tell you is the recent history of house prices and it would be fair to say that the financial crisis did not strike the housing market as severely as was predicted. As is always the case, there were some areas that fared better than others due to demographic circumstances, but overall the consensus seems to be that it wasn’t too bad.
Following are some median property prices that have come through for the last 12 months:
Melbourne:
House price: $524,500 – 8.87% increase
Unit price: $400,500 – 9.97% increase
Sydney:
House price: $610,500 – 6.87% increase
Unit price: $427,500 – 8.24% increase
Adelaide:
House price: $387,500 – 3.9% increase
Unit price: $305,000 – 4.68% increase
Perth:
House price: $482,500 – 4.42% increase
Unit price: $389,500 – 0.60% increase
Brisbane
House price: $452,500 – 1.59% increase
Unit price: $358,000 – 1.11% increase
Surprisingly, Brisbane which has had an excellent track record of increases in past 10 years, has taken a hit which is thought to be reflective of the economy in Queensland. Brisbane will continue to grow and the development potential within 12 kilometers of the CBD will provide investment opportunities in the future.
Sydney and Melbourne powered ahead with price increases, especially when you consider the scare of the financial crisis in the early part of the year.
Perth seems to have suffered with their unit prices but their house prices have managed to climb and that may have surprised some investors as Perth was predicted to be most affected by the financial crises because of Western Australia being such a strong mining state.
Even though there have been price increases, the basic factors to consider when investing, are the infrastructure drivers like transport (rail is good), shopping and schools. Each city has its own area that has strong growth and will continue to have strong growth as the property market improves.
Now is not the time for speculation. Buy in those areas with a proven track record.
Filed Under: Property Investment • Property News
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