Index points to recovery in house prices

The RP Data-Rismark Hedonic Index has revealed a recovery in property values over the first two months of 2009. While some capital cities still experienced a softening in values, the national average dwelling value rose 1.1 per cent, recovering some of the 3 per cent lost in 2008.

Rismark CEO Christopher Joye said the result proved how successful the increased first home owners grant had been and said this price strength would hopefully encourage developers back into the market.

The best performing capital city in the three months to end of February was Darwin which saw dwelling values rise by 6.1 per cent. Sydney and Melbourne also saw prices rise by 0.5 and 1.9 per cent respectively.

Brisbane prices were weakest, which softened 2.2 per cent in the three months to end of February. Adelaide, Perth and Canberra also recorded price falls of 1.3, 1.0 and 1.8 per cent.