Yes it’s happened – the median house price in Sydney is now over $1 million according to Domain.
I remember back in January 2010, at the beginning of this decade, when Michael Yardney predicted Sydney’s median price would reach $1 million by the end of the decade and many called him an optimist and a spruiker.
He was clearly wrong said the many property pessimists on the internet forums. And he was!
It only took 6 years not 10 years to achieve a median price that makes Sydney values on par with London.
Sydney’s million-dollar median
House prices in Sydney have surged 22.9 percent over last 12 months, double the national median house price growth of 11.7 per cent, according to the Domain June House Price Report.
Domain’s senior economist, Dr Andrew Wilson, says house prices leapt an extraordinary 8.4 per cent over the June quarter to $1,000,616.
“It’s the highest rate of growth since the late 1980s,
“And it’s because of low interest rates and they’re going lower, lower and lower.”
Will property prices collapse?
Probably not. Not unless we have terribly high interest rates, massive unemployment or a severe recession.
Commenting on the report, Domain Senior Economist Andrew Wilson said Sydney’s strong growth is expected to continue for the foreseeable future.
“Sydney’s median house price has increased by 22.9 per cent over the 2014-15 financial year which is one of the highest annual growth rates ever recorded by the city. It’s a result that is now exceeding the boom time results of 2001 and 2002.
“The main catalyst has been low mortgage rates — the lowest since the mid 1960s. It’s a perfect storm of local supply and demand factors generating the price growth. A strong local economy, coupled with high levels of migration and a chronic undersupply of housing and record levels of investor activity have also been a significant contributor.”
So what type of property should you buy in Sydney?
Remember the multi award winning team of property investment strategists at Metropole have no properties to sell, so their advice is unbiased.
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