THIS MONTH IN RAY WHITE NOW
Interest rates continue to increase every month and , at this stage , there ’ s still no sign of inflation declining . Although it ’ s unlikely that we ’ ll see a strong rebound in house prices anytime soon , it ’ s been surprising that over the last two months , capital city medians in many capital cities have begun to creep upwards again . Sydney house prices are up 1.8 per cent since October , while Melbourne has increased by 2.4 per cent . Perth saw a kick up of 0.8 per cent since October while Hobart is up by 1.8 per cent and Canberra has increased by 2.6 per cent .
While surprising given the level of negativity about the market , it ’ s consistent with other market drivers . Population growth has started up again and this is putting pressure on housing demand . While it showed up quickly on rental growth , at some point it will also be putting pressure on price growth . Supply is currently being constrained by high construction costs . On the ground , high prices continue to be paid for renovated properties which remain hard to find . The only real opportunities to grab a bargain seems to be unrenovated homes which , given what ’ s happening to prices , are likely to become more expensive next year .
While it ’ s easy to get caught up in short term price movements , the reality is that they mean very little to most people given that property is not an asset class that ’ s easy to buy and sell quickly . Over the long term , where you buy in the cycle matters far less and property has outperformed shares , gold , term deposits and treasury bonds over the past 10 years . This month , we take a look at long term performance of different investment types , including why financially it makes sense to buy , not just as an investor but also as an owner-occupier . For property specifically , we look at the suburbs that have seen the strongest price growth , as well as the commercial property types that have done best .
We hope you enjoy reading this month ’ s Ray White Now .
Nerida Conisbee Chief Economist Ray White Group
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