Reflection of the market in 2009
Despite
all the negativity, it looks like the Australian property market weathered the
economic storm quite well in 2009. Latest data released from RPData-Rismark
shows 11.5% growth, surpassing all predictions of how the market would fair in
the wake of the Global Financial Crisis (GFC).
Other
research also released, states the growth figure as even higher with the
Australian Bureau of Statistics (ABS) preliminary findings recording 13.6%
growth and Australian Property Monitors recording 12.1% growth during 2009.
In fact, the ABS has reported a
rise in house prices of 5.2% in the December quarter, the biggest
quarter-on-quarter increase since September 2003.
All
capital cities recorded strong gains during 2009 with Darwin and Melbourne
leading the pack with increases of 16.6% and 15.6% respectively. These cities were followed by increases
in
During
the early part of 2009, first-home buyers drove the market recovery.
RP Data’s head of research, Tim
Lawless, said in commentary late last month,
“The strongest gains were recorded
early in the year with national home values up 3.1% over the first quarter of
‘09. The market was being led by first-home buyers and consequently the most
affordable end of the market saw a 3.9% lift in values”.
Growth
of these affordable properties gradually slowed to record a 0% change in the
December quarter. On the contrary, properties in the middle and upper end of the
market were the main contributors to the increase in overall values over the
second, third, and fourth quarters of the year.
Despite
the rises, new home sales have actually slumped over the recent period.
According to the Housing Industry Association (HIA), new build sales rose
overall in 2009 but were down by 4.6% during December. Harley Dale, chief
economist at HIA said, "It
is clear that momentum is coming out of new home sales as the stimulus from
first time buyer related activity recedes".
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