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Increasing capital city values good news for real estate industry

5 Feb 14

The latest RP Data-Rismark Home Value Index report found an overall increase in the value of capital city properties over the last 12 months, which could be great news for those with real estate careers or anyone undertaking real estate training.

According to the report, there has been an overall value increase of 2.7 per cent over the last three months ending in January and overall growth of 13.2 per cent since the beginning of the current growth cycle, which started in June 2012.

Furthermore, capital city prices are now 4.8 per cent higher than their previous peak in October 2010, indicating a return to a strong real estate market across the nation.

With regards to South Australia, Adelaide experienced a 1.6 per cent increase in property values during the last three months, with 2.5 per cent growth over the last year.

RP Data Research Director Tim Lawless said this growth is likely to dampen any thoughts towards the Reserve Bank of Australia's (RBA) decision to raise the official cash rate.

"Together with the higher than expected inflation reading and a lower Aussie dollar, the sustained growth in dwelling values is another factor the RBA is likely to consider when deliberating on any movement in the cash rate," said Mr Lawless in a February 3 statement.

Furthermore, Rismark's Chief Executive Officer Ben Skilbeck said that an increase in positive consumer sentiment was leading to this growth across the nation.

"Growth in outstanding housing borrowings has increased meaningfully from its lows. Most noticeable is investor borrowing which for the calendar year 2013 grew by 7 per cent compared to 3 per cent in 2011," said Mr Skilbeck in a February 3 statement.

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