Price corrections continue but could the worst be over?

All capital city housing markets produced negative growth in the year ending

February 2012, with the unit markets not producing much better. The only capital city market to record positive growth in the year ending February 2012 was Sydney units, at 1.22%.

However, Residex CEO John Edwards said that the position is not the worst we have seen in the past 12 month period.

“Some capital cities moved to growth in the month of February, with Perth and Sydney houses being the standouts”.

Melbourne, Adelaide and Brisbane are among the major cities that continue to

provide poor outcomes. The annual falls in these cities are significant.

“For Melbourne, we have to go back to 1991 to find an annual fall in value

greater than what we are currently seeing”, said Mr. Edwards.

Some capital city markets are showing signs of growth and predictive data for the next eight years is positive.

While Brisbane and Sydney housing markets are tipped to exceed 5% p.a. in the next eight years, it is the Perth market that Mr. Edwards says is currently leading the way.

“Growth in Perth has been relatively rapid. We continue to anticipate significant future growth in this market and believe it may well become the most expensive housing market in Australia, exceeding Sydney and Melbourne who have traditionally held this title at various points. Perth is no longer displaying a poor trend in rental yield and it is now providing a rental return of close to the Australian median”.

Investors have also received good news, with the vast majority of markets

continuing to show an increase in rentals.