National property prices keep on rising

Sydney Leads Property Market Surge as National Prices Continue to Climb

Australia’s property market continued its upward momentum through the June quarter, with Sydney leading the charge, according to the latest Australian Property Monitors’ Quarterly Housing Report.

National Market Performance

The national median house price rose by 1.9% over the June quarter, reaching $627,940. Units outpaced houses, with the national median unit price increasing by 2.5%, a notable rise from the 1.6% gain seen in the March quarter.

Sydney Breaks Records

Sydney remains the standout performer among capital cities. The city’s median house price jumped 3.1% over the June quarter, reaching a new record high of $811,837.

“December 2013 marked the high point of Sydney’s current growth cycle, yet the market has continued to perform,” said Dr Andrew Wilson, Senior Economist at APM.
“Sydney’s median house price has now broken through the $800,000 barrier. Over the 2014 financial year, the city’s median house price rose by 17.0%, or nearly $118,000.”

Capital City Highlights

• Melbourne: House prices rose by 1.7% over the June quarter, slightly higher than the 1.4% growth in the previous quarter. Annual growth reached 10.3%.

• Brisbane: The city recorded its eighth consecutive quarter of growth, with house prices rising 1.5% and units up 0.8%.

• Adelaide: House prices increased by 1.1% for the quarter and 5.8% year-on-year.

• Hobart: Saw a moderate rise of 0.8% in house prices during the quarter.

• Perth: Experienced a modest gain of 0.2%.

• Canberra: Reported a stronger increase of 2.2% in house prices.

• Darwin: Was the only capital to record a decline, with house prices falling by 1.9%.

Dr Wilson noted that while Sydney, Melbourne, and Perth have led the market over the past year, the annual growth in these cities is expected to settle at around half the levels seen in 2013.

“Confidence is gradually returning to markets like Brisbane, Adelaide and Hobart, which are now on track for stronger growth in 2014,” Wilson said.
“Meanwhile, Darwin and Canberra continue to underperform, though Darwin’s robust economy and limited housing supply may help reignite price growth sooner rather than later.”

Key Takeaways

• The national median house price rose 1.9% over the June quarter to $627,940.

• Annual national house price growth hit 10.9%.

• Sydney (+17.0%) and Melbourne (+10.3%) led annual growth among capital cities.

• Brisbane and Adelaide also posted solid annual gains of 6.9% and 5.8%, respectively.

• Unit prices surged in Sydney (+3.9%) and Adelaide (+3.6%) during the quarter.

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