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Gold Coast property values outshine Sydney and Melbourne!!

THE Gold Coast and Brisbane are outshining property big leagues Sydney and Melbourne in property values, according to CoreLogic.

Data from CoreLogic’s Home Value Index shows that median values in Brisbane and Gold Coast have outperformed Sydney and Melbourne by 5.3 per cent for houses and 4.1 per cent for units in rental yields.

The report revealed that Canberra was the best preforming capital city, leading with 5.3 per cent while Hobart was the weakest at 2.8 per cent.

Melbourne and Sydney were rated as having the lowest rental yields for houses at 2.8 per cent.

CoreLogic research director Tim Lawless said while capital gains remained positive in Australia’s housing markets the pace of growth was decreasing.

“At some stage you will see property values starting to fall, it’s a natural part of the cycle that after a very strong growth phase, you generally do have a down phase,” Mr Lawless said

“We have seen that in the past couple of decades.”

Mr Lawless said the market is experiencing plenty of upwards pressure on prices with low mortgage rates and investment demand.

“We have seen rising once again for prices since May which are consistently rising on the back of the Reserve Bank numbers just released and we are also seeing based on the Australian Bureau of Statistics data that investors are now once again representing nearly 50 per cent of new all mortgage demand,” he said.

“We are seeing investors once again playing a very active role in the market after they did fall away post changes from APRA back in 2014 and 2015.”

Mr Lawless said at this time last year, November and December there was some drops in capital city property values, auction clearance rates were not as strong but it looked like this year a very different market thanks to low mortgage rate environment and level of investors.

“There is a growing perception from prospective buyers that the apartment sector may be somewhat risky in this marketplace,” Mr Lawless said

Hannah Sbeghen, Gold Coast Bulletin, November 1, 2016 12:05pm.

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