Newly released RP Data detailing the housing market results for September indicate that capital city home values continued to soar to new record heights over the course of the month.
As expected, Sydney and Melbourne persisted in driving capital city home values higher, helping to fuel a 1.6 per cent increase overall.
The modest upward trend in Adelaide will benefit owners of property in Norwood. The capital city recorded a 1.1 per cent capital gain over the month – likely a more sustainable growth rate in the long term than Sydney or Melbourne’s 2.5 per cent and 2.4 per cent, respectively.
“Any debate about unsustainable growth in housing markets should be very much focussed on Sydney and Melbourne,” said Tim Lawless, RP Data research director and analyst.
Based on the combined capitals index, capital city dwelling values plummeted by 7.4 per cent from their record high in October 2010 to the unbearable low of May 2012. Since then, capital city home values have risen by 8.7 per cent through the end of last month.
For those who have invested in real estate in Adelaide, with interest rates staying put at their current low rates, spring may well see the start of a genuine upturn in home values.