Positive Outlook for Australian Residential Property.

Despite the economic crises taking place across the globe, the year 2011 finished on a positive note for Australian residential property, according to residential property experts Residex Pty Ltd. Residex data shows that property values changed by -0.72 per cent and 0.50 per cent for houses and
units respectively in the month ending December 2011, leaving Australian residential property in a better position than at the same time the previous year where houses and units adjusted by -1.1 per cent and -0.54 per cent.
Residex founder and CEO, John Edwards said, “The data suggests that we are exiting a period of negative adjustment”. Mr. Edwards went on to explain, however, that we should not expect any rapid uplift in housing values because current economic conditions are not capable of supporting strong consumer activity.



The poorest performing capital city for house value growth in the year 2011 was Brisbane, with capital growth of -6.70 per cent, well under the Australian average of -3.18 per cent. The best capital city market and only market to achieve positive growth last year was Hobart, with capital growth of 0.32 per cent increasing median house values to $389,000.



The Sydney unit market was the standout in 2011, being the only capital city to achieve positive growth for the year to December at 2.16 per cent, increasing the median value to $488,000. On the other end of the scale, Darwin was the worst performer in terms of capital growth with a 7.73 per cent decline in median value, dramatically lower than the Australian average.
Despite what appears to be some poor performances from our capital city markets, Mr. Edwards said, “It is reasonable to believe that the year ahead will be better for residential property owners when compared to last year. Most owners should see their assets hold value or increase”. The data certainly demonstrates a positive outlook. Residex predictions for capital city housing markets are all positive for the next three years. Perth appears to be the market to watch in the immediate future, with 6.31 per cent growth forecast per annum over the next three years. The unit market in Perth
however presents a different story, having the lowest prediction (-0.31 per cent). Hobart units display the best predictions, with Residex forecasting 4.60 per cent growth per year over the next three years.
“This year is probably the time where investors should be active provided the world economy does not move to severe recession as a consequence of the problems in Europe”, said Mr. Edwards.

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January 2012