Well, according to research by LJ Hooker, nearly every suburb in Sydney and almost half of all suburbs in Melbourne have posted median house price gains of more than 50 per cent over the last 5 years.
But as always the markets were fragmented showing vastly different price increases.
Sydney’s top property performers:
Australia’s most expensive suburb Point Piper gained a 176 per cent increase in prices, while prices fell 35.3% in Denham Court in Sydney’s south west .
Source: Australian Financial Review
Melbourne’s top property performers
Property values inner and south eastern suburbs grew strongly during the last 5 years, but only 3 suburbs doubled their median price during that time – Princes Hill in inner-city Melbourne, Huntingdale in the southeast and Flinders on the Mornington Peninsula.
For the majority of the country, WA and NT aside, the start of 2017 had market indicators pointing squarely in favour of a strong property market.
There was strong competition for the limited amount of good properties on the market.
This resulted in auction clearance rates of around 80 per cent in Sydney and Melbourne and strong price growth across most capital city markets.
However, the second half of the year heralded a distinct property market shift.
Despite an ongoing positive economic environment – low interest rates, declining unemployment and strong population growth – investor demand moderated due to tighter lending restrictions and listings rose considerably in the lead up to the traditional spring selling season.
The market has moved on and things will be different in 2018.
As I stared this blog : A rising tide lifts all ships.
But: When the tide goes out you see who’s swimming naked!
There is still upside left in certain markets, but home buyers and investors won’t be assured of strong capital growth – they will have to buy selectively.
Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au