New research by Domain has revealed that Sydney’s median house price has jumped to 22.9% in the last 12 months, which is about double the national median house price growth of 11.7%.
Indeed, Sydney’s median house price also increased by 8.4% in the June quarter to $1,000,616, according to the Domain data.
The report also saw the Brisbane housing market produce figures slightly below the expected benchmarks for 2015. Median house prices in the state only increased by 0.6% to $490,855, and unit prices were up by 1.0% to $371,508.
Over the past year, Brisbane’s house prices have increased marginally by 1.9%, as unit prices dipped by 3.2%.
“Underperformance by the local economy and fragile buyer sentiment continues to impede buyer activity and prices growth in Brisbane. Buyer activity in the inner and middle zones of city remain solid, while the budget markets to the west and north of the city are showing early signs of a sustained revival,” said Domain senior economist Andrew Wilson.
“Significant recent inner-city apartment construction will likely continue to push supply well ahead of demand in this market sector and impede prices growth”.
A modest increase was seen in the Adelaide housing market over the June quarter, with a 0.2% median house price jump to $479,285. Unit prices in the area, however, fell by 2.7% over the quarter to $292,399.
“The prospects of a solid recovery in buyer activity for the Adelaide market have lessened with recent results indicating a generally fragile buyer sentiment. A sustained improvement to the local economy would be the key to driving house prices — in particular a fall in the high levels of unemployment,” Wilson said.
“Adelaide remains the most affordable mainland capital city with relatively high yields and low vacancy rates likely to attract increasing numbers of investors. The outlook for the market remains mixed for the remainder of 2015, though prices growth for the year is likely to match last year’s result.”
The Perth median house price dropped to 0.9% to $605,089. Unit prices were down 2.1% to $405,417. Moreover, in the last 12 months, Perth’s median house price fell to 1.4%, while unit prices are down by2.1%
“Modest buyer activity and weakening house price growth can be expected for the remainder of 2015. The market is reflective of the weakening local economy over the past year, with the resource sector declining and unemployment rising sharply,” Wilson said.