House prices almost 10% higher over financial year

by Maya Breen02 Jul 2015
Figures from CoreLogic RP Data June home value results reveals capital city dwelling values rose 9.8% higher over the financial year, slightly lower than the 10.1% of the 2013/14 financial year.

CoreLogic RP Data’s head of research Tim Lawless says the interest rates cuts in February and May could have factored into pushing capital gains higher.

“Growth conditions had been moderating from April last year through to the end of January 2015,” Lawless said. 

“With the RBA cutting the cash rate in February, there was an instant buyer reaction across the Sydney and Melbourne housing markets where auction clearance rates surged back to levels not seen since 2009, capital gains once again accelerated and we are now seeing Sydney and Melbourne homes selling in record time; Sydney homes are selling in just 26 days and Melbourne homes are selling in 32 days.”

Sydney was the best performing capital city, up 3.1% over the three months to June 2015 while Darwin was the weakest at -3.1%, although it had the highest gross rental yields of 5.8%.

Sydney also ranked most expensive city with a median dwelling price of $772,00, while Hobart was the most affordable city over the quarter with a median dwelling price of $315,500.