Australian city property prices rise 10pc

Photo credit: 8LettersUK

The RP Data-Rismark Home Value Indexs shows the home prices in major Oz cities jumped 9.8 per cent in 2013, with 1.4 per cent of that increase taking place in December alone. That 9.8 per cent marks the fastest annual price rise since August 2010, notes Property Wire, and the largest increase per calendar year since 2009.
 
On a quarterly level, capital city house prices rose 2.8 per cent in the last three months of the year, faster than the 3.7 per cent recorded in the third quarter. Indeed, the property market performed a lot stronger in the second half of the year, with values jumping 6.8 per cent compared to 3 per cent in the first six months.

"Clearly value growth has gathered momentum throughout the second half of the year but despite the strongest annual value growth since 2009, the rate of growth was not that startling given the low interest rate environment and the previous successive years in which home values fell," comments Cameron Kusher.

"Although home values increased by 9.8% in 2013 the growth follows a 3.8% annual fall in values in 2011 and a further 0.4% annual fall in 2012. Cumulatively, from peak to trough, capital city dwelling values were down 7.7% prior to this current growth cycle," he adds.