Investors continued to see strong returns on their real estate in Carlton, as the December CoreLogic RP Data Home Value Index points to price growth throughout the Sydney area.
Yearly gains in the New South Wales capital stood at 11.5 per cent, offering total gross returns of 15.4 per cent compared to the previous year. The figures revealed that the median dwelling price in the region registered at $800,000, the highest in the country.
“In dollar terms, Sydney home owners have seen approximately $82,000 added to their wealth thanks to the strong capital gains over the year,” explained RP Data head of research Tim Lawless.
Mr Lawless emphasised that there was a slight slowdown during the latter part of 2015, which was due to a wide range of factors. These include affordability pressures, as well as measures introduced by the Australian Prudential Regulation Authority to clamp down on investment lending.
Furthermore, higher mortgage rates have made it more difficult for some people to access the finance they need to buy property in Carlton.
The Residential Property Price Index from the Australian Bureau of Statistics showed that values in the Harbour City increased 3.1 per cent between the June and September quarters of last year. While this result might indicate the slowdown Mr Lawless alluded to, it nevertheless still points to a period of expansion.
The increase is more pronounced when analysed on a yearly basis, as a 19.9 per cent rise in property values was seen between the three months to September in 2014 and 2015.
If you’re hoping to invest in real estate in Carlton, be sure to have an experienced real estate agent on your side. We can guide you through the market and help you make well-informed decisions.