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Darwin bucks national trend of falling house prices: RP Data-Rismark
Darwin is currently Australia’s best-performing housing market, while Perth’s house price decline continues despite its strong market fundamentals.
Dwelling prices in the Northern Territory capital city increased by 2.1% in the three months to May 2011, compared with a nationwide capital city decline of 1.2% over this period, according to the RP Data‐Rismark Hedonic Home Value Index.
For the year to date, Darwin dwelling prices are down by 3.2%, led by a poorly performing units market.
Unit prices are down 6% in May, 2.2% over the May quarter and 5.2% for the year to date, dragging the median price down to $383,500.
In comparison, house prices are up 0.8% in May, up 3.2% for the May quarter and down 1.7% for the year, with the median house price sitting at $497,000.
Darwin’s median dwelling price now stands at $460,000.
Darwin currently has the strongest rental market, with gross rental yield of 5.4% for houses and 5.7% for units.
RP Data research director Tim Lawless says the latest index shows that gross Australian apartment yields have now risen to 5%.
Apart from Darwin, unit rental yields are improving for property investors in Canberra (5.4%), Brisbane (5.2%) and Sydney (5.2%).
The worst yields are in Melbourne (4.2%), Adelaide (4.6%) and Perth (4.9%).
Perth recorded the biggest drop in dwelling prices for the three months to May 2011 as capital city prices continue to decline at a greater rate than those in the rest of the country.
Perth house prices are down 4.5% for the quarter to $475,000, and down 5.1% for the year.
The median price of a Perth dwelling currently stands at $462,500. For the year, Perth dwelling prices are down 7.5%.
“Despite what appears to be fairly strong fundamentals, the Perth housing market doesn’t appear to be turning just yet,” Lawless says.
“The critical missing piece of the puzzle seems to be buyer demand.”
For the three months to May, Hobart’s dwelling prices declined by 1.9% ($315,100), Melbourne’s by 1.8% to $500,000, Brisbane’s by 1.4% to $425,000, Adelaide’s by 1.3% to $382,500 and Canberra’s by 0.7% to $483,750.
The Sydney housing market remains flat, declining just 0.1% in the May 2011 quarter to $522,000. For the year to date the market is up 1%, the only capital city to record positive growth for 2011.
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