Property values may soon be on the rise again, if the latest trend in figures is an indication.
The RP Data-Rismark National Property Values Indices showed Sydney's property values increasing by 0.11% for the September quarter, with strong unit performance backed by strong rental yields and low vacancy. On a national level, property values declined by 0.5% in the September quarter - a marked improvement from the June quarter when values fell by 2%.
"It's the lower priced segments of the market that are likely to lead any property market recovery, with first homebuyers leading the charge," he said. "The doubling of the First Home Owner Grant has had an immediate impact on market traffic, however we're yet to see this increased level of traffic translate into any real buying activity."
Most recently, Sydney was the only market to record an increase in dwelling value during the September quarter. Over the three months ending in September, Sydney dwelling values rose 0.11%. This is mainly due to the unit market, where values increased 0.56%, backed by strong rental yields and vacancy rates still around 1%.
Source Your Mortgage Magazine: 07/11/2008
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