The total residential property value for the December 2013 quarter has reached $5.02 trillion for the first time, according to the Australian Bureau of Statistics. The values are up from the previous quarter which ended at $4.83 trillion.
The residential sector as of this time comprises of 9.3 million properties with a median price of $539,400, from $496,800 the same time the previous year. Sydney leads all capital cities in growth rate with Perth running in second at a 3.5% growth in December.
Read more about this on the Perth Now website.
As the year 2013 is about to end, after talks and concerns of a Property Bubble bursting because of the trends in property, the sector is still stronger than ever. In fact, the Real Estate Institute of Australia (REIA) believes that the Residential sector is still undergoing growth and is not on a downward spiral.
The demand for property has been on a staggering high, with several records broken along the way. For properties sold under the hammer, this year has outperformed expectations as it shattered clearance rate records and boasts of the most properties sold over the weekend in history.
House prices throughout the nation have increased by 9.5% and the median home value across the 8 capital cities are at $562,503. This shows clear and steady interest from investors. Is this set to continue as we enter a new year? No one knows. But the trend clearly shows that amidst talks of the residential sector failing, it is performing well and it is here to stay.
Read more about this on the Smart Property Investment website.
SMSF investment in residential property has been a growing concern. Although a less volatile form of investment than market shares, it has been called out as there is a high demand for property in recent years, and SMSFs have been used for this investment type.
The SPAA (SMSF Professionals’ Association of Australia) called these claims as overstated; citing SMSF asset shares in residential property is just a small percentage of the entire sector. As of June this year, residential property shares are at $17 billion, dwarfed by the commercial sector at $58 billion out of a total of $495 billion SMSF asset shares. Commercial property has also been on the rise in this sector as more self employed people consider purchasing their business premise under their SMSFs as this assures a steady income flow – depending on the business performance, and taxation is lesser when the business is setup as an asset. Residential property makes up only 3.4% of this sector.
You can read more about this on the SMSF Essentials website.