National property prices keep on rising

The Sydney property market is leading a growth spurt in property prices, which have continued in most capital cities over the June quarter, according to the latest Australian Property Monitors’ Quarterly Housing Report.

The national median house price increased by +1.9% over the June quarter (to $627,940). Over the same period, the national median unit price grew by +2.5%, which is much higher than the 1.6% increase of the previous quarter.

In Sydney, the median house price rose by +3.1% over the June quarter, projecting it to a new record of $811,837.

“December 2013 was the high watermark for Sydney’s current growth cycle, however, the market continues to perform,” said Dr Andrew Wilson, Senior Economist at APM.

“Sydney’s median house price has smashed through the $800,000 barrier to a new record high. Over the 2014 financial year, the Sydney median house price increased by +17.0% or just under $118,000.”

House prices in Melbourne increased by +1.7% in Melbourne over the quarter, which is slightly better than the +1.4% result seen in the three months to March.

And after eight consecutive quarters of growth, Brisbane continued to surge. During the June quarter, the median house price grew by +1.5%, while unit prices increased by +0.8%.

There were also median house price increases over the June quarter for Adelaide (+1.1%), Hobart (+0.8%), Perth (+0.2%) and Canberra (+2.2%). In Darwin, however, house prices decreased by -1.9%.

Dr Wilson said that despite Sydney, Melbourne and Perth leading the market over the past year, annual outcomes for these cities is likely to be around half of the exceptional 2013 results.

“Brisbane, Adelaide and Hobart are seeing confidence return to their local markets and are set to record stronger house price growth in 2014 compared to 2013.

“Darwin and Canberra remain the capital city underperformers although Darwin’s strong economy and underlying shortage of housing will act to re-ignite house prices sooner rather than later.”

Highlights

  • The national median house price increased by a solid +1.9% over the June quarter to $627,940.
  • The national median house price increased by +10.9% over the year ending June.
  • Sydney and Melbourne reported the highest annual median house price growth rates with Sydney up by +17.0% and Melbourne up by +10.3%.
  • Brisbane and Adelaide have recorded solid annual increases in the median house price with rises of +6.9% and +5.8% respectively.
  • Sydney and Adelaide unit prices increased strongly over the June quarter, rising by +3.9% and +3.6% respectively.
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