Overall capital growth in median value houses across Australia was 3.98% over the three months ending July, which was largely driven by strong growth in the metropolitan and regional markets in New South Wales, Victoria and the Australian Capital Territory. Hobart houses also performed well with an increase of 1.05% in the July quarter, however regional Tasmania suffered a sharp decline of 3.18%. Table 1 shows the latest Residex data to the month of July.
Overall, the Australian property market has generally performed well in the June quarter.
The Sydney, Melbourne and Brisbane markets saw strong gains over the June quarter, with the exception of Brisbane units – which were virtually unchanged. The resource markets in WA and NT continued their decline, however the pace of the declines has slowed. The June summary is presented in Table 1.
May proved a relatively positive quarter for Australia’s housing market. A snapshot of the May statistics is presented in Table 1.
Of the house markets, the Hobart market recorded the strongest quarterly growth gains in May with the median house increasing in value by 2.59%. This was followed by Country NSW houses, which posted 2.39% growth for the quarter.
In the unit market, the median Hobart unit increased by a shocking 6.66% in the May quarter. Regional Queensland was a very distant second, where median units increased by 2.44% over the same time period.
The latest data and analysis of the Australian housing market reveals that 17 of our major dwelling markets recorded negative growth in the March quarter. Table 1 presents the latest statistics summary.
The latest data and analysis of the Australian housing market reveals an overall subdued or negative performance across the country. This is a likely result of a combination of things – such as restricted access to finance and sluggish economic performance, which in turn affects purchasing power and the confidence of buyers.
Table 1 presents the summary of growth, rent and sales data for February 2016, across the major housing markets.
I was recently reading the latest Residex Best Rent Report, which was released a couple of weeks ago. There are some notable suburbs in the report showing amazing yields – in fact one suburb in South Australia has a rental yield of over 7% – but the predicted capital growth is not that hot.
That got me thinking… I am often asked what is more important – cash flow or capital growth?
Capital growth versus cash flow has been a hotly contested topic in property investing since the year dot and most people stand firmly in one camp or the other. On the other hand, I have always considered that both are important. After all, if I can achieve both then this allows me to build a portfolio without having large out of pocket expenses each month.