L.J. Hooker and BIS Shrapnel figures indicate momentum growth.
Australia’s largest property group, L.J. Hooker, today released figures indicating that many major Australian property markets performed above expectations in the December 2005 Quarter.
Of particular importance were figures indicating the downturn in Sydney property prices may have ended, while new figures emphasise that growth in the Brisbane market has resumed.
The figures were published in a report issued today by L.J. Hooker and BIS Shrapnel, and include the latest and most timely indicator of housing price movements available in Australia today, the L.J. Hooker and BIS Shrapnel Residential Property Index.
L.J. Hooker Managing Director, Warren McCarthy, said the latest Residential Property Index figures clearly indicate that there is value to be had in the Australian property market.
“I expect these figures will surprise some of the recent market doomsayers,” McCarthy said.
“There hasn’t been too much positive comment recently on the Australian property market, particularly in Sydney and Melbourne,” he said. “But the latest Index figures compiled by L.J. Hooker and BIS Shrapnel provide concrete evidence that the property market is more than just bubbling along.
“There is no doubt that the next quarter will be critical, and a repeat of the positive signs shown in the December 2005 quarter will give an even stronger indication that the property sector is delivering value.”
On a market by market basis, the Sydney Residential Property Index showed an increase of 4.1 per cent, which is an improvement that could be the first step towards stabilisation in local housing prices.
The Brisbane Index continued the improvement it has shown since the middle of 2005, showing an increase of 4.1 per cent in the December quarter. The annual rate of growth in Brisbane remains more than encouraging, with 10.1 per cent annual growth in the Index to December 2005 emphasising growing momentum over the latter months of the year.
The Melbourne Index shows good growth in the December quarter, with a 3.8 per cent rise outperforming annual Index growth of 1.2 per cent.
It is no great surprise that Western Australia’s so-called V8 economy fuelled a 5.5 per cent increase in the price index in the latest quarter, while annual growth remains at an impressive 20.6 per cent.
The Adelaide Index experienced a downturn of 4.6 per cent, but this could be a blip caused by compositional change in sales taking place in the market. The previous quarter indicated strong growth and annual growth grew to 3.2 per cent, so there are clearly positive signs in Adelaide.
The Hobart and Darwin Indexes are experiencing strong annual growth – 9.7 per cent and 27.7 per cent respectively - although the former was clearly better performed in the first half of 2005.
Darwin is the fastest growing market in Australia, and raced ahead in the second half of 2005 after a flat spot mid-year.
About the L.J.Hooker and BIS Shrapnel Residential Property Index -
In partnership with BIS Shrapnel, L.J. Hooker data on property sales has been used to create an Index showing movement in the median price of residential property in all Australian capital cities.
Each month the Index gives an indication of the movement in median prices in each capital city based on a rolling three months of sales in Sydney, Melbourne, Brisbane, Adelaide and Canberra and a rolling six months in Perth, Hobart and Darwin.
To create the Index, L.J. Hooker sales in each city have been divided into regions and median house prices identified for each region. The median price for each region is then given a weight based on the proportion of housing stock located in that region relative to the total housing stock in the city. The weighted median prices for each region are then aggregated to form the price index for the city.
Australia’s largest property group, L.J. Hooker, today released figures indicating that many major Australian property markets performed above expectations in the December 2005 Quarter.
Of particular importance were figures indicating the downturn in Sydney property prices may have ended, while new figures emphasise that growth in the Brisbane market has resumed.
The figures were published in a report issued today by L.J. Hooker and BIS Shrapnel, and include the latest and most timely indicator of housing price movements available in Australia today, the L.J. Hooker and BIS Shrapnel Residential Property Index.
L.J. Hooker Managing Director, Warren McCarthy, said the latest Residential Property Index figures clearly indicate that there is value to be had in the Australian property market.
“I expect these figures will surprise some of the recent market doomsayers,” McCarthy said.
“There hasn’t been too much positive comment recently on the Australian property market, particularly in Sydney and Melbourne,” he said. “But the latest Index figures compiled by L.J. Hooker and BIS Shrapnel provide concrete evidence that the property market is more than just bubbling along.
“There is no doubt that the next quarter will be critical, and a repeat of the positive signs shown in the December 2005 quarter will give an even stronger indication that the property sector is delivering value.”
On a market by market basis, the Sydney Residential Property Index showed an increase of 4.1 per cent, which is an improvement that could be the first step towards stabilisation in local housing prices.
The Brisbane Index continued the improvement it has shown since the middle of 2005, showing an increase of 4.1 per cent in the December quarter. The annual rate of growth in Brisbane remains more than encouraging, with 10.1 per cent annual growth in the Index to December 2005 emphasising growing momentum over the latter months of the year.
The Melbourne Index shows good growth in the December quarter, with a 3.8 per cent rise outperforming annual Index growth of 1.2 per cent.
It is no great surprise that Western Australia’s so-called V8 economy fuelled a 5.5 per cent increase in the price index in the latest quarter, while annual growth remains at an impressive 20.6 per cent.
The Adelaide Index experienced a downturn of 4.6 per cent, but this could be a blip caused by compositional change in sales taking place in the market. The previous quarter indicated strong growth and annual growth grew to 3.2 per cent, so there are clearly positive signs in Adelaide.
The Hobart and Darwin Indexes are experiencing strong annual growth – 9.7 per cent and 27.7 per cent respectively - although the former was clearly better performed in the first half of 2005.
Darwin is the fastest growing market in Australia, and raced ahead in the second half of 2005 after a flat spot mid-year.
About the L.J.Hooker and BIS Shrapnel Residential Property Index -
In partnership with BIS Shrapnel, L.J. Hooker data on property sales has been used to create an Index showing movement in the median price of residential property in all Australian capital cities.
Each month the Index gives an indication of the movement in median prices in each capital city based on a rolling three months of sales in Sydney, Melbourne, Brisbane, Adelaide and Canberra and a rolling six months in Perth, Hobart and Darwin.
To create the Index, L.J. Hooker sales in each city have been divided into regions and median house prices identified for each region. The median price for each region is then given a weight based on the proportion of housing stock located in that region relative to the total housing stock in the city. The weighted median prices for each region are then aggregated to form the price index for the city.
