Hobart with growth of 13.6% emerged as the country’s best performing capital city based on growth in dwelling values over the past twelve months, according to the latest CoreLogic Home Value Index.
Sydney came second with 13.0% growth just ahead of Melbourne with an annualised average increase of 12.7%.
For investors and self-managed superfunds seeking decent income returns, CoreLogic says that regional investments are producing stronger yields. The combined gross rental yield for houses in regional Australia is 4.9% compared with 3.1% for city houses. The difference isn’t quite as stark for apartments. However, regional units are still well ahead with gross rental yields of 5.2% compared to 4.0% for city apartments.
For what it’s worth, Darwin is generating the strongest rental yields of all Australian capital cities. In the Northern Territory capital, houses are producing gross yields of 5.5% and apartments are retuning 5.8%.
Compared to a year ago, national residential property listings are down by 4.3%, according to SQM Research. Listings were down in Hobart by 20.2% and in Melbourne by 15.3%. The tight supply in Victorian and Tasmanian capitals will help to maintain the mounting pressure on house and unit prices.