Business News

Residential property growth rate slackening

The growth rate of residential property around the country is showing signs of slowing, according to sector researcher Future Estate.

Quoting statistics from RP Data, Future Estate said home values rose across the country by only 8 per cent on average in the quarter ended November 2014.

“Over the last year, home values rose on average 8.5 per cent, and whilst healthy, is lower than the peak growth of 11.5 per cent observed in April 2014,” the specialist research house said.

“All capital cities are now experiencing lower growth than their recent peak, apart from Hobart.

“Sydney and Melbourne still remain the dominant players in the property market, where annual value growth peaked at 16.7 per cent in April 2014 and at 11.9 per cent in January 2014 respectively.”

Despite the signs of slowing growth, specific areas of the nation’s two major capitals have continued to enjoy solid improvements in residential property values.

In Sydney, the western suburbs have led the way, with no signs of the growth abating as demand for housing continues to outweigh supply.

“The suburb of Seven Hills as an example has seen 24 per cent growth in home values in the 12 months to July 2014, according to Australian Property Monitors,” Future Estate said.

In Melbourne, Hawthorn and Balwyn North have been the outstanding suburbs in regard to appreciating residential property values.

“Although the Melbourne market is considered second only to Sydney in terms of housing price growth, the results have shaped a well-supported and firming market,” Future Estate said.

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