Apartments beat houses for capital growth in 2007
Friday, February 1, 2008/
Apartments were a better investment than houses in 2007, according to data compiled by property researcher RP Data-Rismark.
Across all capital cities, unit values increased by 16.9%, compared to 11.9% for houses. And units still produced a better yield for investors of 4.8%, compared to just under 4% for houses.
The best performing market in 2007 was Adelaide with a 27.3% increase in dwelling value to a median of $375,685. Brisbane, with 22.8% capital growth, and Melbourne, with 19.6% capital growth, were next best.
Sydney was more moderate, with 5.9% increase in the value of houses and 10.7% for units. Perth went backwards thanks to affordability constraints; the median house price fell 1.2% to $506,179.
Looking ahead, RP Data-Rismark is bullish and forecasting a strong year of growth for residential property.