Mortgage demand remains stable

Australia’s capital city dwelling values increased by 10.1 per cent over the past financial year, despite seasonal volatility impacting monthly figures, according to RP Data.

Over 2013/2014 the top performing cities for capital gains have been Sydney and Melbourne where dwelling values are up 15.4 per cent and 9.4 per cent respectively across each city.

The Brisbane housing market, where conditions have generally remained relatively sedate, is now gathering some pace with dwelling values moving 7 per cent higher over the past 12 months, the third strongest result of any capital city.

On the other hand, the index results show that the softest performances over the past year have been recorded in Hobart (2.5 per cent), Canberra (2.9 per cent) and Adelaide (2.9 per cent).

RP Data research director Tim Lawless said that with interest rates remaining low for the foreseeable future, it is doubtful that housing values will start to slide, at least not at a macro level.

“Activity across RP Data valuation platforms has also held firm at relatively high levels suggesting mortgage demand isn’t dropping off just yet,” Mr Lawless said.