Total annualised returns for property jumped almost six-fold in the second quarter compared to first quarter results, according to property research firm IPD.
Returns on all property types including income and capital rose to 5.9%, but the research group forecasted future rises would be more moderate.
According to Anthony De Francesco, IPD managing director for Australia and New Zealand, the sharp rise came from a pullback in negative capital growth. He added that while the property market will continue to see upswings the pace will be moderate in line with the general softening in the economy.
Annualised capital returns which were minus 6.1% in June last year, should return positive in the next quarter.
The biggest improvement was made in office assets which rebounded from minus 0.9% in March to 5.1% in June.
Can you afford to buy in this suburb? Find out how much you can borrow
Top Suburbs :
Get help with your investment property
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 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 and appointment is free.
We value your privacy and treat all your information seriously - you can check out