Friday, January 29, 2010

RP Data - Rismark December 2009 report

Units outperform houses

2009 saw Australian unit values increase by 13.5 per cent compared with house values up 10.4 per cent. The trend was the consistent across every capital city, with units returning a strong gain over the year.

According to Mr Lawless, “The higher gains in the unit market are a deviation from normal performances. Historically houses have tended to outperform units. The recent reversal in fortunes has occurred due to more buyers leaning towards units because they have a more affordable price tag and are often located in more strategic locations in relation to transport and amenity than many detached housing options. Other factors may also include changing housing preferences, particularly amongst baby boomers, and more highly targeted unit developments being delivered to the market.”

Brisbane The Brisbane market remained comparatively subdued during 2009 with values increasing by 7.3 per cent over the year. The comparatively weak performance can partly be attributed to the strong gains recorded in 2007 where Brisbane values gained 24.6 per cent over the year. Gross rental yields in Brisbane remain above the national average with houses returning 4.4 per cent and units returning 5.0 per cent. 2010 is likely to see Brisbane outperform the national average due to the fact it is in a later stage of the cycle, together with ongoing strong population growth and the benefit of several major infrastructure projects coming to fruition. The median house price in Brisbane is now $463,000 and the median unit price $383,600

See RP Data Report

"December research undertaken by RP Data and Rismark International showed Brisbane property values rose by 7.3 per cent in 2009, well below the national average of 11.5 per cent.

This confirmed the findings of the Australian Property Monitors House Price Report, released earlier this week,which RP Data disputed at the time.

RP Data research director Tim Lawless said better performing capitals in 2009 included Darwin (16.6 per cent), Melbourne (15.6 per cent), Canberra (14.7 per cent), Hobart (12.4 per cent) and Sydney (11.4 per cent).

But Mr Lawless said he expected 2010 to be a very different story for the Sunshine State capital.

"In Brisbane, we have vacancy rates of around three per cent, very strong population growth and not a great deal of new housing being released. So that's the dynamic that's pushing prices upwards," he said.

Brisbane Times

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