The Sydney property market is on the move.
Sydney has recorded its quickest turnaround in decades, with house prices rebounding almost $50,000 last quarter according to Domain’s House Price Report for the September quarter.
Houses prices regained almost one-third of the value lost during the two-year downturn, with the city’s median up 4.8 per cent to $1,079,491 according to Domain.
Sydney’s house price downturns and recovery
The rapid recovery — four times greater than the next strongest quarterly rebound of 1.2 per cent following the 1994 market low — has surprised most property commentators.
The recovery can be attributed to the lower interest rates, the relaxation of bank lending standards, a post-election boost in buyer confidence and increased affordability.
Over the same period, unit prices recovered about one fifth of their value, increasing 2.6 per cent – $17,314 – to a $694,840 median over the three months.
The city’s south and inner west suburbs also recorded strong results, with respective jumps of 7.1 and 6.9 per cent adding $75,000 and $100,000 to their medians.
Domain reports that prices in the inner west have also grown annually, one of only three regions to do so.
They’re up by 4 per cent in the 12 months to September.
Unit price growth was strongest on the northern beaches, with a 13 per cent rise (largely attributable to the type of apartments sold).
The lower north shore, with a 5.4 per cent jump, inner west and city and eastern suburbs at 3.3 and 2.7 per cent, followed.
Unit prices across all regions remained down annually, apart from the northern beaches.
ANZ head of Australian Economics David Plank said he expected Sydney’s recovery to continue into next year.
ANZ bank has forecast that the Sydney and Melbourne house prices will be growing at more than 12 per cent per annum by the middle of next year.
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