The latest RP Data figures show that property prices across Australia are falling and the RBA’s decision to drop interest rates has made no difference.
The decline in property prices impacts all states in both houses and units. The average change year on year for houses is -5.8% and units -1.5%. The hardest hit capital city is Melbourne where the value of houses sunk by a whopping 8.8%. The median price is now $490,000. Units also experienced a similar fate and fell by 5.4%.
The other major capital city to experience falling prices was Brisbane – prices for houses fell by 6.8% and units by 3.9%. Interestingly, Sydney house prices fell by 4.6% however unit prices increased by 0.8%. The median dwelling price for a house in Sydney is $555,000.
So what does this all mean for investors? Well I think this is good news and my money is on Melbourne and Brisbane. History shows that over the long term both these capital cities have been consistent growth performers and right now the property market in these cities is primed for good buying. As a savvy investor, it’s your job to make sure you bag a bargain and make hay while the sun shines.
With the median house price in Melbourne at $490,000 and Brisbane at $415,000, investors should find good bargains at affordable prices. Focus on areas within these capital cities that have a history of solid growth, good infrastructure and high demand for rentals.
Until next time…happy investing!