06/01/2014 - 15:24

Home values rise nearly 10% over 2013

06/01/2014 - 15:24

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Home values rise nearly 10% over 2013

Home values in Perth rose 9.9 per cent over 2013, to finish the year 3.6 per cent higher than the previous peak.

Research released last week by property market analysts RP Data showed the Perth median house price finished last year at $520,000, after lodging a 1.3 per cent gain in value in December.

Median prices for detached houses were up 10.2 per cent for the year, RP Data said, with unit values rising 6.3 per cent over 2013.

“The growth in home values has well and truly outstripped rental growth and gross rental yields opn the typical Perth house have fallen from 4.5 per cent a year ago to 4.2 per cent currently,” RP Data senior research analyst Cameron Kusher said.

“Similarly, unit yields have fallen to 4.8 per cent from 5.0 per cent a year ago.”

Across all capital cities, median home values rose 9.8 per cent over calendar 2013.

House price growth outpaced that of units, at 9.9 per cent versus 9 per cent, respectively.

“Despite the strongest annual value growth since 2009, the rate of growth was not that startling given the low interest rate environment and the previous successive years in which home values fell,” Mr Kusher said.

“Although home values increased by 9.8 per cent in 2013, the growth follows a 3.8 per cent annual fall in values in 2011 and a further 0.4 per cent annual fall in 2012.

“Cumulatively, from peak to trough, capital city dwelling values were down 7.7 per cent prior to this current growth cycle.”

The best performing capital city for 2013 was Sydney, which recorded a 14.5 per cent increase in home values, while the weakest was Hobart, which recorded a 2.2 per cent rise over the year. 

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