House prices rise in August: Pete Wargent
Pete WargentDecember 17, 2020
The Reserve Bank released its latest Chart Packs to 27 August, which showed that on a national basis house price growth has steepened.
This data is now presented on a log scale, which is just as well since Sydney prices were heading up almost vertically when presented on a linear scale.
Brisbane is finally now joining Sydney and Melbourne by shaping in an upwards trajectory.
CoreLogic-RP Data also released its price indices for August 2015 over the last week.
Over the past quarter house prices have soared in Sydney (+7.4 per cent), Melbourne (+8.0 per cent) and Brisbane (+2.2 per cent).
On the other hand, on a quarterly basis house prices declined in Adelaide, Perth, Canberra and Darwin.
Regional house prices in aggregate also declined over the past quarter.
Regional house prices in aggregate also declined over the past quarter.
On Twitter, Cameron Kusher of the same company updated his chart of home values since December 2008, which underscores the importance of capital growth to investors.
While it was possible for investors to find a positive cash flow in Hobart back in 2008, since that time home values have been stone dead flat in the Tasmanian capital, while Sydney prices have burned up by 76.4 per cent.
Brisbane appears most likely to be the next to go over just 9 per cent growth in home values since 2008.
Click to enlarge
Looking at the split between house and unit price growth we can see that Sydney unit values exploded 9.2 per cent higher over the last 3 months (this had been evident for quite some time at auctions, and the index probably lags) as affordability constraints related to detached houses bites.
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.
His latest book is Four Green Houses and a Red Hotel.
Pete Wargent
Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.