Sydney finished the month as the Best performing capital city with an increase of 6.8%, it also proved to have the second lowest rental yield units at 3.9%.
Once again Sydney was names the most expensive city with a median dwelling price of $780,000.
While the higher rates of capital gains in Sydney can be tied back to strong economic conditions, and high rates of population growth, the same cannot be said for Hobart where economic conditions and migration rates are gradually improving from a low base.
Sydney home values have been rising for four years, and have increased by a cumulative 59% over this time frame.
Based on the CoreLogic Index results over the first six months of the year, capital city dwelling values have moved 5.5% higher during 2016, with the most substantial capital gains located in Sydney (8.9%).
Rental yields are generally low across all of the capital cities, however, Sydney is one of the only states where yields for both houses and units have dropped to new record lows.
Overall, the strong housing market conditions in Sydney is being reported in-line with high auction clearance rates and resilient levels of mortgage related activity and are also supported by a robust level of consumer confidence.
Auction clearance rates have shown a noticeable improvement since December last year; Sydney clearance rates have been higher than 70% through most of 2016 to date, with the last two months seeing the success rate of Sydney auctions holding firm around the mid 70% range.
Some positive news for Sydney buyers is that there are early signs that Sydney’s housing market may be starting to turn in favour of the buyer.
The typical Sydney home is now taking 40 days to sell compared with 26 days a year ago and discounting rates have risen from 5.5% a year ago to 5.6%.
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