New research from RP Data has found that 45% of Australian properties are worth at least double their original purchase price - and less than 4% are in negative equity.
The research firm's latest Property Equity report has revealed that 45% of AUstralian properties have doubled in price or more since being purchased. The areas with the highest proportion of homes which have doubled in value are typically located in regional markets where values have moved from a low base and the housing market has seen long-term improvements in housing values, but Melbourne also makes the top performer list - the only capital to do so.
“The Melbourne metro area is the exception; it is the only capital city to fall within the top ten list of regions enjoying the largest proportion of homes with more than 100% equity accumulation,” said the report's author, RP Data research head Tim Lawless.
The report also shows that just 3.7% of Australian homes are currently valued at a lower amount than the price at which they were purchased. According to Mr Lawless,
there is variation between regions, with locations that have recorded a more
severe downturn in home values in recent times now recording higher
proportions of homes in negative equity. Properties in Far North Queensland and
South Eastern Western Australia currently hold the largest proportion of
negative equity at 13.5% and 11.2% of all dwellings respectively. He said that other lifestyle markets such as Queensland?s Gold Coast and Sunshine Coast also show a large proportion of homes in negative equity.
Over the five years to June 2011, capital city home values increased by around 30 per cent and provided a significant wealth boost to most home owners during this period. However, with Australian housing markets softening recently, home values are down 2.7 per cent from their October 2010 peak to June 2011.
“Recent buyers who purchased a home during this time have potentially seen the value of their home move below their contract price,” said Lawless.
He added that Australia?s residential housing market is now worth an estimated $4.56 trillion - almost four times the value of the Australian equities market ($1.3 trillion, according to the ASX).
Do you have more than $120k in your super fund? You could use your super to buy property - Find out how
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out