Figures released this week by Property Analysts Residex suggest that the property Market in Australia is beginning its revival, after what has been seen as a mini slump over recent times due to lower levels of consumer confidence and higher interest rates.
Although the overall result of the figures is a positive one, they are sending out some mixed signals about the health of the market. Median prices of housing rose in metropolitan centres across the country whilst sales volume and mortgage approvals fell throughout the month.
According to Residex Managing Director, John Edwards, "March figures suggest a more confident, if still somewhat cautious mood has returned to the housing market." He goes onto say that"this is because purchasers who are equity rich, wealthy or property investors are largely unaffected by rate rises and, having dodged the bullets, march on regardless. Those hurt the most by successive rate rises take the hits and are left behind".
As such it seems that property investors have not been deterred from increasing their portfolio's during this tough economic period that we are enduring, whilst the level of owner occupier buyers has decreased which is to be expected given the current interest rate climate that we are operating in.
The figures also show that apartments are performing really well in comparison to houses as a result of the strong rental market. Investors are increasingly becoming more interested in apartments due to the increasing cost of renting them out.
Hobart was the best performed market in the country over the month with a 3.61% increase in the median house price to $350,500. Adelaide was one of the worst performing cities in Australia with just a slight increase of 0.30% over the period. It's not all bad news for the city of churches though as the median price of housing has increased by 4.25% over the quarter, more than any city in Australia when looking at the quarterly figures.
Other cities to perform well during the month were Perth and Melbourne. The commodities boom over in the West continues to strengthen their overall economy and an increase in the median price of housing by 2.93% to $521,000, the most expensive in the country, was testament to that. The Median price of housing rose by 2.62% to $481,500 in Melbourne in March.
All other major ports in Australia posted increases in the median price of housing except for the ACT. The Nations capital median price of housing fell by 0.88% to $458,000 during March.
Perth was also leading the way when it came to the increase in price of apartments over the month. The median price of apartments in Perth rose by 3.00% to $409,500, following the lead of its housing as the most expensive in the Country.
If you are interested in investing in Property wherever it may be throughout Australia or increasing your portfolio, contact us here at Rate Detective and we can help you to achieve your goals.