Positive results for home values in August

The RP Data-Rismark Hedonic Home Value Index for August brought some good news for home owners when it was released recently.   

Reporting on the ‘total return’ of Australia’s housing, which is calculated by combining monthly gross rental and capital returns, the Index saw dwellings in Australia’s capital cities achieve upwards ‘total return’ growth of 0.2 per cent in August.  According to RP Data-Rismark, such a return was the result of strong rental growth rates combined with the slowing decline of dwelling values.

While the Index also saw dwelling values fall by -0.4 per cent, this was the lowest seasonally-adjusted decline seen in the national housing market since April of this year. 

RP Data’s senior research analyst Cameron Kusher commented that a notable result was the “resilient performance” of home values in the Sydney residential market.  Sydney was the best performing capital city, with dwelling values down by -0.1 per cent (seasonally adjusted) over the three months to August.   RP Data-Rismark also found that Sydney’s total return over the past year, including rents, was up by 5 per cent. 

Melbourne’s results were also significant, according to Kusher, with home values rising in raw terms in August after declining over the previous four months.  He noted that Melbourne would be an interesting location to watch over the spring selling season. 

In terms of rental performance, RP Data and Rismark found Darwin to have the highest rental yields, with gross rental yield of 5.3 per cent for houses and 5.8 per cent for units. 

For more information about home values and rental rates in a particular location of interest, please feel free to stop in at any of the CENTURY 21 offices around the country to speak with a dedicated real estate professional. 

Posted by Charles Tarbey on 10/10/2011 at 9:17 AM | Categories:


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