Property prices double every 10 years. Or do they?

A recent report by research group CoreLogic found between 1996 and January 2006 combined capital city home values increased by a sweet 151.7%. House values took the lead rising by 159.6% while unit values notched up gains of 110.1% over the decade. 

Have we hit 100% gains since 2006?

It’s a different picture over the last ten years - from January 2006 to January 2016.

Over this timeframe, home values across Australia’s combined capital cities increased by a more modest 72.0% - well short of a doubling of values. Again dividing the results between property types, house values rose 73.1% over the last ten years compared to a 64.3% increase in unit values.

Melbourne streaks ahead

Some cities have fared better for price appreciation than others.

CoreLogic’s figures confirm Melbournians are sitting pretty. Home values in Victoria’s capital have indeed doubled over the last ten years, rising 100.9% – way ahead of nearest growth rivals Sydney (78.0%) and Darwin (75.3%).
 

Those juicy gains are tax-free

Of course, the 72% rise in home values nationally is nothing to sneeze about especially as our homes are a tax-free asset. It pays to bear in mind too there are ‘markets within markets’. Your particular suburb may have streaked ahead relative to the rest of the city. Drilling down further, your home may have outpaced neighbouring properties depending on location, features and other characteristics.

With Australia’s median home value now sitting at $550,000, if prices do double in the next ten years, it could be the easiest half a mill you’ll ever make.