Housing capital gains trump units: CoreLogic RP Data

Housing capital gains trump units: CoreLogic RP Data
Housing capital gains trump units: CoreLogic RP Data

Capital gains made through detached housing investments is trumping growth made through units with house values 10.4% higher across all capital cities compared to units at 5.6% over the financial year.

According to CoreLogic RP Data's June RP Data Hedonic Home Value Index found only property in Darwin and Hobart bucked the trend.

Melbourne house values had an 11.2% capital gain over the financial year, with apartments only 2.4%.

CoreLogic RP Data’s head of research, Tim Lawless, said the underperformance of units compared with houses is likely due to higher supply levels for units compared with detached houses.

“The Inner Melbourne unit market exemplifies the weakness in this sector where the latest CoreLogic RP Data ‘Pain and Gain’ report revealed that almost one quarter of all apartments across the Inner Melbourne region resold over the March quarter at a price that was lower than the purchase price," Mr Lawless said. 

"Interest rates cuts in February and May have contributed in pushing capital gains higher."

 

 

Click to enlarge

Housing capital gains trump units: CoreLogic RP Data

Michael Crawford

Michael Crawford

Michael is the real estate reporter for western Sydney and loves writing about homes and the people who live in them. A former production editor and news journalist, he enjoys writing about real-world property purchases as well as aspirational buys and builds. Following a recent move from Sydney’s northern beaches, Michael now actually enjoys commuting.

Tags: 
Investment Gains

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?