City Value Indexes
- Thread starter Twitch
- Start date
Just did a quick analysis of price movements and a bit surprised with the results:
Melbourne's prices have gone down .5% for the last 4 months; 15.4% increase for the last 12 months
Brisbane's have gone up 5.16% for the last 4 months; 19.1% increase for the last 12 months.
Adelaide's have gone up 6.7%for the last 4 months; 19.9% increase for the last 12 months
Brisbane's have gone up 5.16 for the last 4 months; 19.1% increase for the last 12 months.
Sydney's have gone down .5% for the last 4 months; 5.3 % increase for the last 12 months.
It appears that Brisbane and Adelaide are showing no signs of a slow down. Are these figures a true reflection of what is going on in the market at the moment?
Melbourne's prices have gone down .5% for the last 4 months; 15.4% increase for the last 12 months
Brisbane's have gone up 5.16% for the last 4 months; 19.1% increase for the last 12 months.
Adelaide's have gone up 6.7%for the last 4 months; 19.9% increase for the last 12 months
Brisbane's have gone up 5.16 for the last 4 months; 19.1% increase for the last 12 months.
Sydney's have gone down .5% for the last 4 months; 5.3 % increase for the last 12 months.
It appears that Brisbane and Adelaide are showing no signs of a slow down. Are these figures a true reflection of what is going on in the market at the moment?
afraid not
Both values are the outcome of wider variables, such as the strength of the economy and credit. Both depend on the amount of money available. Both are the outcomes/symptoms of the same thing, and when there is a deviation of one, the other will catch up.
Hi Spark, do you have similar charts for Brisbane and Melbourne?
Would be interesting to see how they compare.
Cheers,
Shadow.
Hi Spark
It is an interesting chart. There are some other relationships within the chart to consider when analysing such as volatility and mark to market value. The share market is much more liquid and it is easily marked to market. This increases its volatility esp when compared to a less volatile index such as property with high entry exit costs and poor mark to market pricing.
It certainly is a very interesting relationship. Thx for this.
Cheers
Shane
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Thank you Plusnq! Great charts.
Please find below for Perth and Adelaide.
Summary: Roughly house prices are correlated to the All Ords index with the following coefficients:
Sydney x 110
Melbourne x 85
Brisbane x 70
Adelaide x 50
Perth x 55
Makes sense, ha?
By looking at the charts above, only Sydney seems to be fairly priced as per today (24/09/2008) minding the long term.
Adelaide & Perth seem to be overpriced big time (unless they have changed dramatically and truly deserve different relation to the All Ords index)
Please find below for Perth and Adelaide.
Summary: Roughly house prices are correlated to the All Ords index with the following coefficients:
Sydney x 110
Melbourne x 85
Brisbane x 70
Adelaide x 50
Perth x 55
Makes sense, ha?
By looking at the charts above, only Sydney seems to be fairly priced as per today (24/09/2008) minding the long term.
Adelaide & Perth seem to be overpriced big time (unless they have changed dramatically and truly deserve different relation to the All Ords index)
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So am I interpreting this correctly...that for a given All Ords value, Perth's median price should be exactly HALF Sydney's??
In that case, I'm not surprised the correlation factor is poor!
Rgds, Chris
Another month, another update
Surprisingly, some cities went up....
Thanks again for sharing. Great info.
The old thread was getting a little long so I thought I'd start a new one.
Here's a spreadsheet with the latest Residex value indexes for the capital cities up to April 08.
Enjoy, and happy charting
Hey Twitch, any chance of an update
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