Brisbane property values have bounced in the past month with new figures revealing a strong finish to the first quarter of the year.
Values rose by 2.9 per cent in March according to the latest RP Data-Rismark March Hedonic Home Value Index.
That increase followed a poor performance in February when values dropped by 2 per cent.
While Brisbane values are still 5.2 per cent below the market’s previous peak Ben Skilbeck of Rismark said it had one of the best rental yields of the capital cities.
“With Brisbane dwelling values up 2.9 per cent for the month ended 31 March 2014, it now looks like the 2 per cent fall in February was representative of natural market volatility as opposed to being indicative of a downward trend,” he said.
Many capital cities experienced a flat market in February. All put Perth have rallied during March to end the first quarter of the year on a strong note.
Half of all Australia’s capital cities are now recorded record high dwelling values.
Nationally dwelling values went up 2.3 per cent during March, resulting in a 3.5 per cent increase for the quarter.
Darwin was the strongest performer in March with a 3.3 per cent increase in values to $547,000.
It was followed by Brisbane, 2.9 per cent; Sydney, 2.8 per cent; Melbourne, 2.3 per cent and Canberra 2.2 per cent.
Adelaide values increased in March by 1.4 per cent and in Hobart it was 1.2 per cent.
Perth recorded the smallest increase for the month of 0.6 per cent and it was the only capital city with out a quarterly increase with its values down 0.6 per cent for the quarter.
RP Data research director Tim Lawless, said nationally values were up 15.8 per cent since the last peak of the market, with much of the growth occurring since June last year.
He warned over the long term such a strong pace of growth could not be sustained.
“We expect housing market conditions to cool down as the year progresses. If the pace of capital gains doesn’t slow, we may see higher interest rates realised much earlier than previously expected,” he said.
Mr Skilbeck said the March result is potentially so strong because of seasonal factors.
“March and September have a history of being comparatively strong seasonal months for dwelling value changes,’’ he said.
