The Sydney market finished the month as the Best performing capital city with an increase of 3.9%, it also proved to have the second lowest rental yield units at 3.9%.
In Sydney, dwelling values continued to increase at more than 1% month-on-month, with the cumulative growth over the cycle (June 2012 to date) now reaching 64%.
This result highlights the differences in growth trends across the capital cities over the same time period.
The rate of annual growth in the Sydney property market has virtually halved from a recent 18.4% peak to the current annual rate of 9.4%.
The strong growth conditions in Sydney and Melbourne have been supported by auction clearance rates that are now trending close to the recent highs recorded during mid 2015.
The trend of fewer sales coinciding with values pushing higher is likely explained, at least partially, by low stock levels, particularly in Sydney and Melbourne, where listing numbers remain close to record lows.
Other factors that are likely to be contributing to the slowdown in transaction numbers include tighter lending conditions, decreasing levels of affordability which prevent some segments of the market from participating and high transactional costs including stamp duty on purchase.
The gross rental yield profile in Sydney has once again pushed to a new record low in August.
Sydney and Melbourne have each recorded the lowest gross rental yields across the capitals for houses at 2.8%, both of which are record lows for the cities.