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Top performing Capital City Revealed
Monday, February 15, 2010
Hobart is officially Australia’s best performing capital city, recording an average growth rate of 12.8 per cent each year for the past 10 years.
According to RP Data’s latest property pulse, Hobart was and is Australia’s most affordable market and has seen exceptional growth as a result.
Comparatively, Sydney’s house price growth was lower than the national average, recording average growth of 6.3 per cent year on year.
Melbourne was a whisker ahead of the national average at 9.7 per cent, while Brisbane recorded house price growth of 11 per cent.
According to RP Data's senior research analyst Cameron Kusher, there have been distinctive periods of growth over the last 10 years, thanks to the various booms and busts the economy has experienced.
Between 2000 and 2003, most capital cities experienced strong home price growth, followed by a long period of negligible value growth.
“Following this boom, values nationally showed little growth again until 2007,” Mr Kusher said.
“The majority of value growth recorded between 2004 and 2007 can be attributed to the Perth market. During this time the city was undergoing a significant boom in values between 2005 and 2007 due to unprecedented strength in the mining and resources sector.”
While property price growth started to regain momentum in the last year, most of the strong results were recorded in the first four years of the decade.
In fact, over the last five years values have grown at an average annual rate of 6.5 per cent which is much lower than the ten year growth rate, showing just how significant the boom was in the early part of the decade.