Property up 4% on cash investments

Despite a year of ups and downs and flat price growth, property has emerged as a sound investment method and continues to be a safe long term nest egg investment. CommSec chief economist Craig James says “total returns on residential property, taking into account by prices and rents, grew by four per cent in 2012 compared to returns on cash investments which gained only 3.7 per cent on average in 2012, RP Data-Rismark's Home Value Index shows capital city home prices were down 0.4 per cent for the year, indicating significant declines have slowed. 

In the second half of the year a rally in most major markets helped to recover losses which occurred in the first six months of 2012. ‘‘Property markets in Sydney, Brisbane, Perth and Darwin, where home values have corrected more than the other capital cities, may be the markets to watch for improving conditions,’’ said RP data research analyst Cameron Kusher, noting signs of recovery were being seen in Perth and Darwin.  Rental growth outpaced value growth last year, with capital city dwelling rents up three per cent in 2012. 

Brisbane, is showing great promise for growth in the coming year and even though RP Data has branded the performance of the national housing market as ‘‘comparatively weak’’ over 2012, Brisbane has the potential to be the shinning light.