Sydney gained the upper hand in leading home growth among Australian capital cities. An increase of 0.3 percent in August led Sydney to attain the highest growth at 1.1 percent compared to last month as stated in a report by realestate.com.au.
In Adelaide, values increased by 0.7 percent and a 0.3 percent growth in Darwin. Other cities such as Melbourne and Brisbane have been steady from month to month. Property wire reported that data in the month of August indicates a slowdown in the rate of appreciation in the dwelling values. Quarterly figures, however, emphasizes the steady growth in the housing market for the past three months. As a result, capital city dwelling values is at 5.3 percent higher over the three months to the end of August.
Since the beginning of 2009, Australia's largest capital city housing market has recorded an increase in the cumulative capital gain of 76 percent. Also, over the past year, Sydney dwelling values has increased at 17.6 percent. While Sydney has increased it dwelling values, a decline in the values can be seen in Darwin at 4.6 percent, Perth at 1.8 percent, and Canberra at 0.9 percent.
Unit values have higher rates than detached houses, with values rising at 0.8 percent. House values have lower rate at 0.3 percent. It is clear that house values have risen at a faster rate than unit values. The index data also show that rental rates have also increased. A growth in weekly rentals rose by 0.7 percent, house rents at 0.5 percent, and unit rent at 1.6 percent.
In May 2013, dwelling values have escalated at a faster rate than the weekly rents. A result of this disparity was the consistent downwards trend in gross rental yields. Sydney and Melbourne are recorded to have low gross rental yields.
Presently, capital cities such as Sydney has increased 16 percent in the newly advertised properties, and 10 percent rise in Melbourne.