Sydney clear winner in real estate revival
Analysts at RP Data-Rismark report that Sydney dwelling values grew 1.5 per cent last month, capping a growth trend that began nearly a year ago.
This makes it the only city to fully recover the losses of the past three years, with values reaching a new peak last month.
Overall, Australia's housing market posted another strong month. Nearly every capital city experienced growth.
The national dwelling value rose 1.3 per cent last month - the second strongest monthly performance since the slump began.
Melbourne values rose 0.8 per cent over the month, seemingly contradicting the Reserve Bank's prediction last week that more falls were ahead for the city.
"[Nationally] the March 2013 result is one of the strongest we've seen over the three years since March 2010," said Rismark International chief executive Ben Skilbeck, who noted that only Adelaide experienced no growth.
RP Data senior research analyst Cameron Kusher said the market had been "quite strong in Sydney since May last year".
"Sydney has experienced a long period of sustained under-performance," he said.
"There's not a lot of new construction taking place but population growth is starting to ramp up again, which is what I really think is driving that market."
Dwelling values rose 0.4 per cent in Canberra, 1 per cent in Brisbane, 2.4 per cent in Darwin, 2.5 per cent in Hobart and 3.4 per cent in Perth.
But, unlike Sydney, values in virtually all the capital cities remain well below their 2010 peaks despite the recent growth trend. Brisbane is still 9.5 per cent down, and Melbourne is 6.2 per cent lower. The national dwelling value remains 3 per cent below its peak.
Frequently Asked Questions about this Article…
Yes. Analysts at RP Data‑Rismark reported Sydney dwelling values rose 1.5% last month, making it the first Australian capital city to fully recover the ground lost since the onset of the March 2010 property slump and reach a new peak.
The national dwelling value rose 1.3% last month, which the article describes as the second‑strongest monthly performance since the 2010 slump began. Despite that lift, the national value remains about 3% below its previous peak.
Melbourne values rose 0.8% over the month — a result that bucks the Reserve Bank's recent prediction of further falls for the city. However, Melbourne is still around 6.2% below its 2010 peak.
Most capitals experienced gains: Canberra +0.4%, Brisbane +1.0%, Darwin +2.4%, Hobart +2.5% and Perth +3.4%. Adelaide was the only capital recorded with no growth in the period covered by the article.
No. Apart from Sydney, virtually all capital cities remain below their 2010 peaks. For example, Brisbane is still about 9.5% down and Melbourne about 6.2% lower, according to the article.
RP Data senior research analyst Cameron Kusher is quoted saying Sydney's market has been strong since May of the previous year. He points to limited new construction combined with a ramping up of population growth as key factors supporting the Sydney market.
The data and commentary came from RP Data‑Rismark. Rismark International chief executive Ben Skilbeck and RP Data senior research analyst Cameron Kusher are quoted, and the Reserve Bank's view on Melbourne is mentioned.
The article suggests the market is improving nationally with uneven recovery across cities — Sydney leading the rebound while many capitals remain below peak. Everyday investors should note the city‑by‑city differences highlighted (growth rates, remaining gaps to 2010 peaks) and consider local supply and population trends when assessing opportunities.
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