The owner of a four bedroom brick home in the northern Sydney suburb of Epping has pocketed $1.37 million on the sale of the property they purchased for $350,000 about 20 years ago.
The 1940s house at 11 Dunmore Road, Epping, which is around 18 kilometres from the Sydney CBD, went for $1.72 million under the hammer on Saturday, during another bumper auction weekend.
The house last sold in late 1994 for $350,000, according to Property Observer,representing an 8% annual price growth for the owners.
The result comes as dwelling value figures released today shows Australian property is experiencing solid and steady price growth.
CoreLogic RP Data February Home Value Index results show Australia’s capital cities have seen dwelling values rise by a further 0.3% in February, taking home values 8.3% higher over the past twelve months.
RP Data Victorian housing market specialist Robert Larocca told SmartCompany the research indicates homeowners and property investors are enjoying consistent underlying growth.
“It certainly shows the property market is continuing to improve at a moderate rate, not a rapid rate, with a view to longer term growth,” says Larocca.
He says results like that in Epping on the weekend show property investment is a long-term game.
“We find the best returns come from owning property for 10 years or more,” he says.
He warns investors not to expect a quick turnaround on a real estate investment because of the upfront outlays of stamp duty and the slow and steady rate of capital gains.
Meanwhile, the national auction clearance rate continued to run hot, sitting at a preliminary 77.1% according to RP Data, compared to 77.3% last week.
Sydney scored an 82.8% clearance of nearly 1150 auctions, making it the fourth consecutive week the city has notched a clearance above 80%.
Larocca says the results place Sydney in “uncharted territory”.
“It really has not had a run like this before, especially in terms of volumes. It has seen great results, but not with this many properties on the market,” he says.
“If the whole point of the property market is selling homes then Sydney is ticking every box at the moment, because a lot more homes are for sale and a lot more are selling.”
Melbourne achieved a 76.5% clearance off 1,539 auctions at the weekend, which Larocca says shows evidence of the market strength last seen in 2010.
“It’s beginning to show signs [similar to 2010], but it’s not quite there yet, but it is edging closer towards that,” he says.
He says volumes in Melbourne are higher than during the 2010 boom, however, indicating more competition in the market is not having an effect on the outcome for sellers.
Larocca also points to Canberra, which logged an 81.6% clearance off 80 auctions this weekend, saying that despite the smaller volumes, Canberra was shaping up to be a strong property market.
“It’s looking like a mini-Sydney and Melbourne at the moment,” he says.
The market is expected to quieten this weekend in Melbourne for the Labor Day long weekend, but will continue to bring plenty of fresh properties before keen Sydney buyers.