Larry SchlesingerDecember 8, 2020
Sydney and Canberra are the only two capital cities to deliver noteworthy returns to investors over the year to November 2011, according to latest RP Data-Rismark Hedonic Home Value Index.
Australia’s biggest city has been kindest to investors, delivering a total return (house price increases and rental increases) over the past 12 months to November of 4.3%.
Canberra was the only other capital city to deliver a noteworthy return for investors of 3.5%. Darwin returned investors 1.7%.
Brisbane fared the worst, delivering a total return of -2.4% over the past 12 months, while Melbourne investors lost 1.9%.
Including gross rents, the total return realised by investors in capital city property remained positive in 2011 at 1.2%.
Sydney house prices remained unchanged in November and were on hold over the past 12 months, rising just 0.5%,while Canberra house prices increased by 0.4% in November, a striking result in the context of a 0.1% increase for the month across all capital city markets.
Overall, Australia’s regional property markets outperformed capital cities in November with values rising by 0.3% on a seasonally adjusted basis over the month, according to the latest RP Data-Rismark Hedonic Home Value Index.
Capital city house prices remained stagnant, rising by 0.1% over the month to continue a trend of non-capital city markets outperforming their big-city rivals over the past year.
Over the past 12 months leading up to the December holiday period, the regional housing market, which accounts for about 40% of all homes by number, has declined by 2.5% while capital city house prices have fallen by 3.5% led by Brisbane (down 7% year on year) Melbourne (down 5.6%) and Adelaide (down 5%).
Over the three months to November, Darwin and Canberra were the best-performing capital cities with values up 0.3% over the three months to November while Melbourne and Brisbane were the weakest with values down 1.7% over three months to November 2011.
Darwin delivered the highest rental yields with gross rental yield of 5.5% for houses and 6% for units while Melbourne had the lowest gross rental yields of 3.7% for houses and 4.3% for units.
