Real estate market: Sydney property prices record strongest growth across nation
The Sydney property market has entered recovery mode, with dwelling prices growing by 1.9 per cent over the last quarter, the strongest of all capital cities across the nation.
The jump in prices has been the most significant over the past month, increasing by 1.6 per cent, per CoreLogic data’s August home value index results.
House prices are up 1.6 per cent for the quarter with a median sale price of $877,220, while units are up 2.5 per cent and have a median of $699,126.
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The price climb has aligned with a “consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised remains low,” CoreLogic’s Tim Lawless said.
Auction results last weekend saw Sydney’s preliminary clearance rate climb to its highest level since February 2017.
This week saw it soften slightly to sit at 78.9 per cent from 584 auctions, mainly due to a higher volume.
The strongest performing region was Baulkham Hills and Hawkesbury at 91.7 per cent, followed by Sutherland at 90.9 per cent and the northern beaches at 90.3 per cent.
Parramatta, Ryde and North Sydney and Hornsby were also strong, all above 80 per cent.
“It’s likely that buyer demand and confidence is responding to the positive effect of a stable federal government, as well as lower interest rates, tax cuts and a subtle easing in credit policy,” Mr Lawless added.
While the signs are encouraging, Sydney prices are still down 6.9 per cent over the past year and 13.3 per cent since the market peak.
Melbourne has also seen somewhat of a recovery, with prices up 1.8 per cent for the quarter, but still down 9.5 per cent since the peak.
“Although the recovery trend in these two cities continues to strengthen, the expectation is that it will take some time for values to return back to their previous highs,” Mr Lawless said.