Sydney may have recorded strong capital growth over the past five years but its long-term performance pales in comparison to smaller capital cities, according to the Property Investment Professionals of Australia (PIPA).
In fact, analysis of capital city house price growth over the past 15 years shows that Sydney came in last – even behind Perth.
PIPA analysis of data from the 2002 to 2017 Australia Bureau of Statistics Established House Price Index, showed that the Sydney house price index increased 142 per cent over the past 15 years but Hobart recorded index price growth of 220 per cent.Melbourne’s house price index increased by 208 per cent to come in second, while Darwin sneaked into third position with a rise of 161 per cent – just ahead of Brisbane on 160 per cent.
PIPA chairman Peter Koulizos said the research reinforced that successful property investment is about long-term results, not supposed short-term wins.”Educated investors understand the importance of time in the market, not trying to time the market, which is really just speculation by another name,” Mr Koulizos said.
“An issue that PIPA had during Sydney’s recent growth run was we knew its market had done very little for the best part of 10 years beforehand.
“So it was the sign of a normal market cycle, not a bubble that threatened real estate prices across the country.”Mr Koulizos said it was important for homebuyers, investors, and the Federal Government to understand Australia was a nation of many property markets – not just one.
In fact, over recent years, sophisticated buyers had recognised that value for money could be found all over the country, he said.”The latest interstate migration figures highlight this with many Sydneysiders opting to relocate to more affordable locations,” he said.
“Likewise, Hobart’s position at number one in the results is further evidence that affordable property is on the radar of investors who generally opt for lower priced real estate.”Similarly, PIPA has always said that the strong price growth in Sydney was driven by emotional owner-occupiers and not the vast majority of investors who can only afford to buy one or two properties in their lifetimes.”
The ABS House Price Index provides estimates of changes in residential property prices in each of the eight capital cities of Australia and related statistics. The information is presented in the form of price indexes for established houses and attached dwellings as well as an aggregated residential property price index.
NOTE TO EDITORS
The Property Investment Professionals of Australia (PIPA) is a not-for-profit association established by industry practitioners with the objective of representing and raising the professional standards of all operators involved with property investment.
Since its inception, PIPA has developed codes of ethics and conduct and professional standards of accreditation and education for the property investment industry, including a Property Investment Adviser Accreditation Course.
PIPA is actively lobbying the federal government to bring property investment advice into a regulatory framework. Until such regulation is introduced, PIPA will continue to provide the public with warnings about working with ethical and professional industry practitioners.
For more information visit www.pipa.asn.au
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