Expectations in paying for capital city property

Expectations in paying for capital city property

Knowing your prices is an essential part of any shopping trip and never is this more so the case than when it comes to buying property.

Having an idea of what real estate is worth in any given area can help ensure you're paying a fair price, which is why doing your homework will pay off in the long run.

The RP Data CoreLogic Home Value Index for October has been released and could be a useful tool if you've secured a fixed or variable home loan and are looking for your next purchase.

Which cities have seen the greatest property price rises?

As you would expect, there are some parts of the country that have seen property prices increase at a faster rate than others.

Sydney and Melbourne have once again been identified by RP Data as the main drivers of price gains over recent months. The New South Wales capital has seen its home values increase 13.1 per cent, while its Victorian counterpart's were 8.9 per cent higher over the year.

Not only this, Sydney, Melbourne, Adelaide and Brisbane were revealed to be the only capitals where a rise in home values had been registered over the past three months.

The Harbour City once again stood out as a hot spot for rising home values, which rose at a rate of more than 1 per cent a month to reach 3.9 per cent growth over the past three.

As for the month of October, Sydney's stood at 1.3 per cent although it was outstripped by Melbourne where property prices were up 1.9 per cent over the course of the month.

How are auctions stacking up?

It's possible you've given some consideration as to how you'll buy your next property and with auctions seeing their popularity rise, this is an increasingly attractive option.

RP Data found that clearance rates stood at around 70 per cent a week throughout October, with more properties being listed for sale in the nation's auction rooms.

Once again, the biggest cities experienced the highest levels of activity, as identified through figures from Australian Property Monitors (APM).

Over the weekend of November 1, Sydney's auction clearance rate stood at 82.4 per cent, building on the success of the 78.9 per cent already seen over the previous weekend.

Melbourne saw similar results with a clearance rate of 80 per cent, which was particularly impressive given that more properties were listed compared to the same time last year.

If you've got your sights set on property in Brisbane then you might also be in luck, as APM revealed the city hosted its highest number of auctions so far this spring over the weekend.

What type of property are you looking for?

There are so many different property types to choose from that narrowing down your options can be a tough task.

Houses could offer particularly strong potential at the moment, especially if you're hoping to buy in one of the capital cities.

Analysis from the Domain Group showed the majority of these locations saw a decline in house prices during the September quarter, with Sydney, Darwin and Melbourne proving the only exceptions to the rule.

The same can be said for units, as Sydney and Adelaide emerged as the only capitals where prices escalated by 1.6 per cent and 0.3 per cent, respectively over the three-month period.

Senior Economist at the Domain Group Andrew Wilson explained that the national quarterly rate of growth is the lowest recorded since March 2013 - and it was mainly spurred on by Sydney.

Perth witnessed a 1.5 per cent fall in house prices, while Adelaide's values marked a 1 per cent decline over the period in question. Values were down 1.7 per cent in Canberra and 1.3 per cent in Hobart.

Brisbane saw the first fall in its median house price since the June quarter of 2012, as values were down 1.3 per cent.

Image credit: www.efffective.com

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