Sydney house prices at record high

Sydney’s median house price has smashed through the $800,000 barrier to reach an all-time high of $811,837 according to the Australian Property Monitors Quarterly House Price Report.

Last month’s surge of 3.1% brings the total house price growth for the 2013-14 financial year to 17%, or $118,000.

The latest quarterly increase is in line with the March quarter results but still considerably lower than the boom era 5.1 per cent recorded over the quarter ending December last year.

December 2013 was the high watermark for Sydney’s current growth cycle.

However, the market continues to perform.

Apartment prices outpaced house prices over the June quarter, growing by an impressive 3.9% to a record high of $573,255.

The best-performing region for apartments has been the northern beaches where unit prices have shot up 9.4% in the past six months.

Sydney

It’s a speculative market at the moment.

Despite the Reserve Bank’s warning to investors this month there was no sign of a slowdown in investor activity.

Investors in May borrowed more than $5 billion for property, now representing 57 per cent of home loans in NSW.

More affordable investor havens have been the best performing regions this year.

House prices in the south-west have risen 9 per cent followed by Canterbury Bankstown at 8.3 per cent.

While the price growth is good news for owner-occupiers, first home buyers are having to dig deeper.



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Andrew Wilson

About

Dr Andrew Wilson is Australia’s leading housing market expert. As senior economist for Fairfax-owned Domain Group, Dr Wilson is one of the nation’s most respected real estate analysts and Australia’s highest profile housing market commentator. Visit his blog at Domain


'Sydney house prices at record high' have 2 comments

  1. July 25, 2014 @ 3:21 am Michael Correll

    When housing prices become newsworthy then we know we are in a bubble.
    News should be the Vatican, Royal Family, business, sports, marriages etc but not housing prices.
    This is my new theory.

    Reply

    • July 25, 2014 @ 7:23 am Michael Yardney

      Thanks for your thoughts Michael – I can think of even better topics for the news than what the Queen and the Pope are up to.

      Why not Geoffrey Edelsten’s latest girlfrind or why Ellen Degenris looks younger now than she did 10 years ago?

      Reply


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