• Property Market Update December 2018

    Property Market Update December 2018

    Buying a property is a significant financial and emotional commitment. So it’s only natural to care about how the value of your investment is impacted by changes in the property market.

    Looking at the numbers, property prices in Australia have fallen over the last 12 months by 5.3% on average across our capital cities1

    So how should you react when you see negative returns like this? 

    Firstly, it’s important to note the most significant falls have occurred in Sydney (-8.1%) and Melbourne (-5.8%), which were the main drivers of growth in the previous five years. There are many parts of Australia where property prices are still rising – including Brisbane (+0.3%), Hobart (+9.3%), Canberra (+4.0%), Adelaide (+1.4%) regional areas (+0.3%). 

    Secondly, these figures don’t apply to every suburb and every dwelling. For example, apartments (-3.9%) have fallen by less than houses (-6.3%) in our capital cities over the last 12 months1

    More importantly, if you plan on holding onto your property for 10 years or more, does it really matter what the market does from one year to the next? 

    Most people agree property is a long-term investment. If you look at property prices with that in mind, it’s much easier to see periods of negative growth as a natural part of the cycle. Or maybe even a buying opportunity. 

    If you’re happy in your home, you’ve invested well – regardless of what the market is doing. And that’s a great reason to stay relaxed and focus on what really matters this holiday season. 

    Median dwelling (house/unit) prices at 30 November 20181 

    City Median dwelling price (house and units) Capital growth last 12 months
    Sydney $821,438 -8.1%
    Melbourne  $656,163 -5.8%
    Brisbane $493,041 0.3%
    Adelaide $433,464 1.4%
    Perth $448,336 -4.2%
    Darwin $426,141 -0.8%
    Hobart $451,039 9.3%
    Canberra $596,141 4.0%
    Combined capitals $619,391  -5.3%

    1CoreLogic Home Value Index, 1 November 2018

     

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    The information here is of a general nature only and is not intended to constitute financial or tax advice. You should consult your professional adviser, accountant or taxation expert for advice specific to your personal circumstances.

    The views and opinions expressed in this article are those of the author alone and do not necessarily represent the views or opinions of RAMS Financial Group Pty Ltd ABN 30 105 207 538 (RAMS),  Westpac Banking Corporation ABN 33 007 457 141 (Westpac) or their related bodies corporate. This article is strictly for information purposes only and neither RAMS, Westpac nor any of their related bodies corporate make any representation as to the accuracy or completeness of the information in this article or endorse the views expressed in it.