Pace of capital gains cools in April
Dwelling values across Australia’s capital cities shifted
down a gear in April, rising by just 0.3 per cent across the
RP Data – Rismark combined capital city index. The
slowdown in the rate of capital growth comes after a very
strong 2.3 per cent month-on-month rise in March and
3.5 per cent increase over the first quarter of the year.
Melbourne (-0.5 per cent) and Canberra (-1.1 per cent)
values recorded a fall over the month while growth in
dwelling values across the other capital cities ranged
from 0.2 per cent in Perth and Hobart to 2.1 per cent in
Adelaide. Every capital city recorded an increase over the
past three months with the largest capital gains being
recorded in Darwin (5.1 per cent) and Sydney (4.1 per
cent).
Since the housing market moved out of its correction
phase at the end of May 2012, dwelling values across the
combined capital city index have increased by a
cumulative 16.1 per cent through to the end of April
2014. According to RP Data’s Tim Lawless, the strong
market conditions have sparked a new round of debate
around the sustainability of recent rates of housing value
growth and the impact on affordability for housing,
particularly in Sydney and Melbourne.
Mr Lawless said, “The reduction in the rate of capital
gains across the combined capital cities housing market
brings growth back into a more sustainable range and will
be a welcome relief for first home buyers. “
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