RATE CUTS BOOST PROPERTY GROWTH
Written on the 3 July 2012
CONSECUTIVE monthly interest rate cuts by the Reserve Bank have helped boost property prices in Brisbane-Gold Coast, says RP Data research director Tim Lawless.
Capital growth for the month to June 30 was 1.0 per cent in the Brisbane-Gold Coast region, according to the latest RP Data-Rismark Capital Cities Home Value Index.
Units in the Brisbane and Gold Coast showed the strongest growth with a 2 per cent increase. Houses grew in value by 0.8 per cent.
Lawless says the market appears to be responding to improved housing affordability and lower interest rates.
“The catalyst for the improvement in market conditions is likely to have been the 55 basis point reduction in the average discounted home loan rate over May and June as well as a subtle improvement in consumer sentiment,” says Lawless.
The figures are promising as June is traditionally a weak month for property. The Brisbane-Gold Coast figures were at the bottom end of the national average, but consistent with Sydney and Melbourne.
Dwelling values rose highest in Hobart (2.7 per cent) followed by Perth (2.0 per cent), Canberra (2.0 per cent), Sydney (1.0 per cent) and Melbourne (1.0 per cent). Adelaide (down 1.1 per cent) and Darwin (down 0.7 per cent) posted reductions in value.
Despite the rise in monthly values, Brisbane-Gold Coast dwelling values remain down for the year (0.9 per cent) and for the quarter (0.3 per cent).
“So far this year, capital city dwelling values have simultaneously risen over three months and fallen over three months,” says Lawless.
“The wash up is that values have fallen more than they have risen, with the market down by 1.2 per cent over the first six months of 2012."