Property News with Karyn O’Dea – 27th Jan 2015
Just three of Australia’s capital cities are expected to experience higher capital growth in 2015 than they did in 2014.
CoreLogic RP Data head of research Tim Lawless forecast that only Brisbane, Adelaide and Hobart would improve, with Brisbane the standout plus the Gold Coast being so close will have this benefit too.
“We are expecting the annual rate of capital gain to finish the year around 7.0 per cent, compared with 5.1 per cent over the 2013 calendar year,” Mr Lawless said.
I believe with the rate of capital gain holding relatively firm over the second half of 2014, fewer affordability pressures and better rental yields than Sydney or Melbourne, we are expecting growth in Brisbane dwelling values to outperform the capital city average.
Mr Lawless said Adelaide would also move forward next year, after posting higher capital gains in 2014 than in 2013. “Transaction numbers have been rising over the second half of the year, indicating a rise in buyer demand. Affordability pressures are relatively tame and rental yields are higher than can typically be found in Sydney and Melbourne,” he said. “While we’re not expecting values to surge across Adelaide in 2015, a steady market, with values continuing to show a modest rise, is the likely outcome.”
Mr Lawless also forecast moderate growth for Hobart, which has been the weakest of any capital city since the GFC. “Transaction numbers have recorded a sharp rise from a low base and dwellings show a remarkable level of affordability compared to other capital cities,” he said.
“Dwelling values are likely to finish 2014 at about 6.0 per cent higher, and as demand from lifestyle buyers continues to rise, we expect Hobart home values to continue their moderate trend higher during 2015.”
We look forward to outstanding results and fantastic growth in 2015 and it has already started!