Victoria and NSW jostle at peak of market for units: HTW clock

Victoria and NSW jostle at peak of market for units: HTW clock
Victoria and NSW jostle at peak of market for units: HTW clock

The valuation firm Herron Todd White has issued its latest property clock for the residential market - a simple broad brush means to suggest where property markets are in April - and what direction prices are moving in.

The regional Victoria city of Horsham joins Melbourne -- also in Victoria -- at the top of the April property clock for units. Horsham is at the peak for the houses clock too. The others (including Melbourne) Coffs Harbour, Dubbo and Newcastle all retain their positions from March, making the peak of market a contest between between Victoria and New South Wales.

While Sydney unit were listed in declined, the report noted that in the Sydney southern suburb of Engadine that unit media prices have risen from $415,000 in December 2012 to $617,500 in February 2016, according to realestate.com.au.

The Gold Coast and Ipswich in Queensland are approaching the peak of the market, while Brisbane and Sydney continue to remain in decline.

 
Victoria and NSW jostle at peak of market for units: HTW clock
 
Previously HTW had advised a cooling off in the Sydney property market was looking increasing unlikely, at least in the short term.
 
"The future over the medium to long term however remains uncertain.
 
"One worrying fact is that rental growth has not increased at a level even close to the growth of Sydney property prices.
 
"This suggests that the involvement of investors appear to be speculative with many banking on capital gains rather than attractive rental yields.
 
"It appears that this increased investor activity (speculative based or otherwise) is driving housing prices to rise faster than fundamental factors suggest they should in the Sydney market.
 
"Factors including the aforementioned falling interest rates, continued strong presence of overseas buyers (fuelled by the falling Australian dollar), tax incentives and positive market sentiment, has seen unaffordability levels continue to soar in the Sydney market with home ownership becoming more unattainable for many, especially young people looking to break into the market." 
 
The report on regional localities noted Port Macquarie’s growth over the past twelve months has been the strongest on the Mid North Coast during the past five years and while the fringe suburbs have shown increases in value over that time, their rate of increase has been behind that of established residential areas within the township.
 
Tags: 
Residential Market Unit Prices

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