The strong May numbers were largely the result of a surge in the Sydney market dwelling values which were up 3.1% over the month.
Sydney finished the month as the Best performing capital city with an increase of +6.6%, it also proved to have the lowest rental yields units at 4.0%.
Once again Sydney was names the most expensive city with a median dwelling price of $782,000.
After such a strong performance across the Sydney housing market, the annual rate of growth has moved substantially higher to reach 13.1% per annum after reaching a recent low point of 7.4% per annum growth over the 12 months ending March 2016.
The largest capital gains over the cycle to date has been in Sydney where dwelling values are 57.5% higher.
Sydney clearance rates remain firm, sitting at around the mid 70% mark over the past three weeks.
The high uses vs units, combined capital cities rate of auction clearance has demonstrated a remarkable bounce back after tracking below 60% during December with Sydney’s auction market recording a clearance rate as low as 52.9% in December.
The extent to which investors are fuelling the latest surge in Sydney home values is difficult to quantify, however housing finance data to March shows investors, as a proportion of all new mortgage commitments, have been trending higher since reaching a recent trough in November last year at 42.9%.
You may also be interested in reading:
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.