Sydney median breaks $1m mark

Sydney median breaks $1m mark

Posted on Wednesday, July 22 2015 at 3:49 PM

The June House Price Report from Domain.com.au has today revealed that house prices in Sydney have surged 22.9 per cent over the last 12 months – double the national median house price growth of 11.7 per cent – to $1 million.

In doing so, the harbour city has emerged as a
significant player in the international property market. The median house price
has now surpassed that of London and is fast approaching New York, though it
remains well behind the property prices of Paris.

The key findings of the report show: 

• Sydney
  market reports remarkable growth over June quarter
• Melbourne
  market continues strong recent revival
• Brisbane
  price growth resumes but remains modest 
• Perth
  house prices still falling as confidence wanes
• Canberra
  market clearly strengthening with buyer activity on the rise 
• National
  median house price is up 4.3 per cent over the quarter and 11.7 per cent year on
  year.

Commenting on the report, Domain senior economist Dr
Andrew Wilson says:
“The Sydney housing market has been the standout performer
of all the capitals over this quarter, recording a phenomenal 22.9 per cent
price growth year on year.

“Other capital cities reported steady growth, with the
Perth and Darwin property markets the only ones to see a drop in median house
price value over the quarter.

“Nationally, the median house price jumped 4.3 per
cent over the quarter – an increase of 11.7 per cent over the year. 



“Sydney’s strong growth is expected to continue for
the foreseeable future, while solid buyer activity and interest is expected to
continue to drive steady growth in the Melbourne and Canberra markets.”



JUNE QUARTER PERFORMANCE
SUMMARY

Sydney 



Median house price increased by 8.4 per cent to
$1,000,616, according to Domain data. Sydney unit prices also surged over the
quarter, by 6.6 per cent to $656,078 – again the strongest local growth rate of
the modern era.

The main catalyst is thought to have been low mortgage
rates – the lowest since the mid-1960s. It’s “a perfect storm of local supply
and demand factors generating price growth”.

Melbourne 



The housing market continued its strong revival,
recording an increase of 3.5 per cent in the median house price to set a new
record at $668,030. Melbourne’s median unit price also increased strongly by
3.2 per cent over the quarter, to a new record $443,549. The median house
price in Melbourne increased by 10.3 per cent over the 2014-15 financial year
with the median unit price up by 4.5 per cent over the same period.



Strong price growth over the last 12 months is thought
to have been generated primarily by aspirational buyers, particularly in
Melbourne’s eastern suburban regions. Rising buyer activity in suburbs west and
north of the city also contributed to the house price growth.

Brisbane 



While positive, the market continued to produce
results slightly below the predicted price growth for 2015. The median house
price increased by just 0.6 per cent over the June quarter to $490,855 with
unit prices up by 1.0 per cent to $371,508. House prices in Brisbane have
increased marginally by 1.9 per cent over the past year, while unit prices have
fallen by 3.2 per cent.

Underperformance by the local economy and fragile
buyer sentiment continues to impede buyer activity, according to Wilson.

Adelaide



The report reveals a modest increase in the Adelaide
housing market, with a slight increase in the median house price over the June
quarter. After a strong result over the March quarter, median house prices
increased by just 0.2 per cent to $479,285, while Adelaide unit prices fell by
2.7 per cent over the quarter to $292,399. The median house price for
Adelaide has increased by 3.3 per cent over the 2014-15 financial year, with
the median unit price up by just 0.6 per cent over the same period.



“Prospects of a solid recovery in buyer activity for
the Adelaide market have lessened with recent results,” Wilson says, adding
that remains the most affordable mainland capital city with relatively high
yields and low vacancy rates likely to attract increasing numbers of investors.

Perth



The median house price fell by 0.9 per cent to
$605,089, while Perth unit prices dropped 2.1 per cent to $405,417. Over the
last 12 months, Perth’s median house price has fallen by 1.4 per cent, while
unit prices are down by 2.1 per cent.

Modest buyer activity and weakening house price growth
is said to be expected for the remainder of 2015.

Hobart



Median house prices in Hobart were steady, after a
drop in the March quarter. Hobart’s median house price remained at $325,972, an
increase of just 0.6 per cent over the last financial year. Hobart unit prices
also recorded a flat result over the June quarter with a median of $272,932,
down by 1.6 per cent over the year.

Increased investor activity and higher numbers of
first homebuyers are set to support the market over the remainder of 2015.



Canberra



Strong growth in buyer activity over the June quarter,
continuing the significant momentum experienced over the last 12 months.
Canberra’s median house price increased by 1.5 per cent to $616,313, an
increase of 5.4 per cent over the 2014-15 financial year, which was second only
behind Sydney and Melbourne for annual prices growth.
While house prices are
performing well, unit prices did fall sharply over the quarter, down by 6.3 per
cent to $382,350 and down by 6.8 per cent year on year.

Recent high levels of apartment construction continue
to push supply ahead of demand with downward pressure on prices growth.

Darwin



House prices rebounded sharply, following a flat
result over the previous quarter. The Darwin median house price increased by
1.6 per cent to $654,270. Although this was an increase of 1.8 per cent
over the 2014-15 financial year, Darwin’s median house price still remains
below the peak $680,337 recorded over the December quarter 2013.


Unit prices fell by 3.4 per cent over the
June quarter to $471,789 but were up by 3.3 per cent over the year ending June.

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