Sydney not the growth capital after all
There’s been a lot of media talk recently about the rate of growth in property values in Sydney, and whether this growth is sustainable in the longer term.
However, it is important to remember that so much of this type of talk tends to be a response to short term movements in price, rather than long term trends.
With this in mind, it was interesting to the latest figures from the property market analysts at Residex which show that when you take a longer term view of property price growth, the Melbourne market has actually outperformed Sydney!
The report looked at median house prices in our capital cities over the 10 years from January 2005 to January 2015, and found that Melbourne’s average annual growth over that period was 6.36%, whereas Sydney averaged 5.06%.
In fact, Perth also came in ahead of Sydney, averaging 5.71%. Perhaps the most surprising result from the report was that one city came in ahead of Melbourne. Believe it or not, houses in Darwin have averaged 8.05% growth over the same period!
The full list of house price growth was as follows: Darwin 8.05% Melbourne 6.36% Perth 5.71% Sydney 5.06% Adelaide 4.64% Canberra 4.53% Brisbane 4.20% Hobart 3.17%
Overall, the average increase in houses prices across the eight capitals was 4.70% per year, which is a very reassuring number when you remember that the global financial crisis fell within this 10 year period.
No wonder so many “Mum and Dad Investors” are turning to property to secure their future financial security!