Australia
Stability remains key feature of 2006 property market in Australia
Australia’s largest property group, L.J. Hooker, released pricing figures that confirm the residential property market is well and truly entrenched in its most stable trading period for some years.
The latest property figures - which are included in the L.J. Hooker and BIS Shrapnel Residential Property Index indicate that most major markets are experiencing a sustained period of stability or steady growth. Managing Director Warren McCarthy said that while the figures were compiled prior to the Reserve Bank’s decision to increase interest rates, he did not expect that the move would unduly impact on the current pricing trend.
”My feeling is that the recent income tax cuts will help offset any negative sentiment surrounding the interest rate increase,” McCarthy said. ”I am also predicting the market will hold its steady course in the short-term, before moving upwards as sentiment continues to improve.” Mr McCarthy also believes that the performance of the Australian share market over the next few months will influence residential property prices. The recent correction of sorts has pushed the All-Ordinaries Index back below 5,000, and any further, stronger selling in the equities market could influence activity in the property sector.”
Looking at the Residential Property Index on a city-by-city basis data shows that the Sydney, Brisbane, Adelaide and Canberra property markets remain steady.
The one property market that really stood out in the latest figures was Melbourne, with the local Index jumping 7.3 per cent in the three-months to April 2006. The annual rate of growth is also strong, with an increase of 5.6 per cent over the year to April 2006.
The key observation is that the Melbourne Index has risen steadily since January this year, which points to a degree of recovery following a pretty dismal second-half of 2005.
In partnership with BIS Shrapnel, L.J. Hooker data on property sales has been used to create an Index showing movement in the median price of residential property in all Australian capital cities.Each month the Index gives an indication of the movement in median prices in each capital city based on a rolling three months of sales in Sydney, Melbourne, Brisbane, Adelaide and Canberra and a rolling six months in Perth, Hobart and Darwin.
To create the Index, L.J. Hooker sales in each city have been divided into regions and median house prices identified for each region. The median price for each region is then given a weight based on the proportion of housing stock located in that region relative to the total housing stock in the city. The weighted median prices for each region are then aggregated to form the price index for the city.
Australia’s largest property group, L.J. Hooker, released pricing figures that confirm the residential property market is well and truly entrenched in its most stable trading period for some years.
The latest property figures - which are included in the L.J. Hooker and BIS Shrapnel Residential Property Index indicate that most major markets are experiencing a sustained period of stability or steady growth. Managing Director Warren McCarthy said that while the figures were compiled prior to the Reserve Bank’s decision to increase interest rates, he did not expect that the move would unduly impact on the current pricing trend.
”My feeling is that the recent income tax cuts will help offset any negative sentiment surrounding the interest rate increase,” McCarthy said. ”I am also predicting the market will hold its steady course in the short-term, before moving upwards as sentiment continues to improve.” Mr McCarthy also believes that the performance of the Australian share market over the next few months will influence residential property prices. The recent correction of sorts has pushed the All-Ordinaries Index back below 5,000, and any further, stronger selling in the equities market could influence activity in the property sector.”
Looking at the Residential Property Index on a city-by-city basis data shows that the Sydney, Brisbane, Adelaide and Canberra property markets remain steady.
The one property market that really stood out in the latest figures was Melbourne, with the local Index jumping 7.3 per cent in the three-months to April 2006. The annual rate of growth is also strong, with an increase of 5.6 per cent over the year to April 2006.
The key observation is that the Melbourne Index has risen steadily since January this year, which points to a degree of recovery following a pretty dismal second-half of 2005.
In partnership with BIS Shrapnel, L.J. Hooker data on property sales has been used to create an Index showing movement in the median price of residential property in all Australian capital cities.Each month the Index gives an indication of the movement in median prices in each capital city based on a rolling three months of sales in Sydney, Melbourne, Brisbane, Adelaide and Canberra and a rolling six months in Perth, Hobart and Darwin.
To create the Index, L.J. Hooker sales in each city have been divided into regions and median house prices identified for each region. The median price for each region is then given a weight based on the proportion of housing stock located in that region relative to the total housing stock in the city. The weighted median prices for each region are then aggregated to form the price index for the city.
