There’s no denying that Sydney has been the property capital of Australia for some time when it comes to blue chip real estate.
With expansive mansions overlooking the Harbour and luxury million dollar homes dotting the central coast, the NSW capital has long held the title of Australia’s most expensive city.
According to recent figures from RP Data, this remains the case today with December 2010 quarter data indicating that the Sydney median house price is now a $637,258.
Canberra and Melbourne are the two next highest capitals with medians of $577,870 and $574,850 respectively according to the findings published in The Sydney Morning Herald.
The closing gap between Melbourne and Sydney medians – with a difference of just over $60,000 – is due to the stagnant conditions of the Sydney market between 2005 and 2009, when values in other capitals were.
While Sydney’s house prices have doubled over the past decade, median values in all other capitals have trebled during the same period. However the slow down in the Sydney market spelled a much needed reprieve for local home buyers rather than a detrimental downturn in value growth.
This is evident in the fact that Sydney still leads the pack when it comes to boasting the greatest number of multi million dollar suburbs in the country, with 11 suburbs recording a median over $2 million in 2010.
The top two suburbs – Vaucluse and Bellevue Hill – recorded medians of $3.68 million and $3.37 million respectively.
These price tags are impressive indeed when compared with Melbourne, where Toorak ($2.18 million) and Kooyong ($2.15 million) are the only two suburbs fetching median prices in excess of $2 million, with the only other suburb attracting a $2 million plus price tag being Perth’s Dalkeith at $2.8 million.
In fact Sydney has 127 suburbs that command a median of $1 million or higher, while in comparison Melbourne has 38, Perth – 18, Brisbane only three, Canberra – 2 and just one in Adelaide.
Analysts expect that the consistent, if somewhat narrowing, gap between Sydney house prices and those of Australia’s other capital cities will start to once again widen as strong economic growth reinforces its position as Australia’s commercial hub.
It’s predicted that we will start to again see growing demand for mid- to high-price-range Sydney properties throughout this year.
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