By Andrew Rennie
10th December 2012
If all the signs are correct, we’re in for a improving property market in 2013. RP Data research analyst Cameron Kusher said current property purchasing behaviours were, in part mirroring those that began the housing market recovery back in late 2008.
Data confirms that capital city home values have started to record modest improvements over recent months, however, values generally remain lower compared with the same time last year.
“As the housing market emerged from the Global Financial Crisis in 2009, property in each market sector record an increase in values.
“The low mortgage rate environment and incentives for first-time buyers saw the more affordable sectors of the market begin to grow first. followed by the premium housing market which shortly thereafter took over as the strongest-performing sector.
“This may provide some insight as to how any future recovery in the housing sector may take place.” Mr Kusher said.
Since the combined capital city housing market bottomed in May 2012, capital city housing markets have recorded value increase of 2.1 per cent to October 2012.
Mr Kusher said that once again, most of recent improvement in values has occurred within the more affordable sectors.
“The current data is a telling sign that although there have been ongoing weakness in housing markets there are signs of improving market conditions.
“With current low interest rates coupled with recent value declines and subsequent improving housing affordability, there are signs of life returning to the market.
“Although we don’t expect the recovery in the housing market to re rapid, it is certainly looking as if 2013 will continue to see improving market conditions.
“it will be interesting to see what transpires over the next 12 months and whether or not the recovery mimies that of 2009 where the premium housing market takes over as the best performer,” Mr Kusher said.
South Yarra continues to be haven for developers, with Little Projects the latest to launch a project in the popular inner-city suburb.
Just 3.4km from the CBD, residents will be spoilt for choice with parklands, trendy cafes and bars, renowned restaurants and the Yarra River on their doorstep.
Little Projects managing director Michael Fox said the $220 million 30-storey Central South Yarra development at 3 Yarra St would have 355 one and two-bedroom apartments and one large penthouse.
Designed by architects Rothelowman, the project features a striking gold band that runs down the length of the building’s facade and a private rooftop retreat with 360 degree views.
One –bedroom apartments start at $348,000, two-bedroom with one bathroom start at $584,000, and two-bedroom apartments with two bathrooms start at $790,000. The 216sq m penthouse is $2.75 million.