Australian capital city property values on the rise

Property investors may be heartened by news from the most recent RP Data-Rismark June Hedonic Home Value Index, which has shown an overall rise in property value across Australia's capital cities.

The new findings, published on July 1, revealed that Sydney and Adelaide hold a tie for the best-performing capital city, with increases of 1.2 per cent each over the three months to June 30.

By contrast, Darwin property values decreased by 2.7 per cent over the quarter, making it the poorest performer out of all the Australian capitals.

In total, for the first half of 2013, capital city values have increased by three per cent – and for the 2012-13 financial year, average property value in these centres increased by 3.8 per cent.

Tim Lawless, research director of RP Data, suggested that all signs now point to continued and sustained recovery in the property sector – which could be good news for anyone considering a real estate investment.

If you are thinking about applying for an investment home loan, there are lots of important things to think about, including the location of your investment property, the type of tenant you want to attract and the returns you can hope to achieve over the long-term.

When looking at any property investment, it is important to adopt a long-term outlook. This doesn't mean comparing month-to-month or quarterly figures – although these can be very useful in helping you evaluate the current market climate.

Instead, you will want to assess your investment over a longer period – ideally several years – to account for natural fluctuations that can occur in the market due to seasonal and other factors.