The RP Data-Rismark Home Value Index for May has shown rents have risen, but home values have fallen. Capital city home values declined by 0.3 per cent, falling for the fifth consecutive month. Rental yields are improving, with Australian apartment yields now rising to 5 per cent. The best rental yields are found in Darwin, Canberra, Brisbane and Sydney. The worst - Melbourne, Adelaide and Perth. Across the capital cities performance has been counter intuitive to what we expected to see given the resources boom. Sydney is the only market to have recorded a modest capital gain, of 1 per cent, over the last year. Perth delivered the weakest result with dwelling values down 7.5 percent year-on-year.
A survey of mortgage-holders under the age of 30 has found that almost three quarters of respondents claimed they have never rented a property. The survey of 1000 Gen Yers by RAMS Home Loans also found that 76 per cent stayed at home longer than they wanted in order to avoid paying rent, to save for a home loan deposit.
And the NSW Government's Regional Relocation Bill recently introduced into Parliament and now in force this new financial year, provides a $7000 incentive for metropolitan home owners who sell their home and then purchase property in regional and rural centres. The regional home buyers scheme, worth $280 million and effective from July 1 will apply to families who move from Sydney, Newcastle city or Wollongong to regional NSW. The Real Estate Institute of NSW says it's an “incredibly practical initiative targeting the housing availability crisis”. But the scheme has received some criticism in the media and by the Shadow Treasurer, claiming there's a loophole and that residents living in Wollongong and Newcastle will move to neighbouring suburbs and claim the $7000 by doing so.
Meanwhile, Australian Property Monitors data shows the number of houses for sale has jumped but average prices are not falling. Prices rose 0.1 per cent across Australia in the three months to the end of May. Sydney and Canberra were the most resilient cities. The largest falls were in Darwin, Brisbane, Perth and Adelaide.
