Australian house and unit prices have continued to rise over the June quarter, and show no sign of slowing down.
The Sydney market has experienced the most growth in both house and unit prices, according to the latest Australian Property Monitor’s (APM) Quarterly Housing Report. The survey recorded an increase nationally of 1.9% over the June quarter, and an increase of 10.9% over the year ending June 2014.
“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,” senior economist at APM, Dr Andrew Wilson said.
Sydney’s unit prices increased by 13.3% or just under $68,000 over the financial year, reaching a median price of $573,255.
The Brisbane housing market is gaining momentum, experiencing the best growth it has seen since 2010.
“Having finally recovered from its previous price peak recorded in June 2010, the Brisbane median house price is now at a new record level of $477,352. Brisbane house prices increased by +6.9% over the year ending June which was the highest annual result for the city in four years,” Wilson said.
The Hobart housing market, on the other hand, can’t seem to get back on its feet – despite a modest increase this quarter.
“Hobart house prices increased modestly by +0.8% over the June quarter and by +6.0% over the year ending June - the best annual result for the city since December 2010. Despite this recent growth, the Hobart median house price remains -3.3% below its previous price peak recorded in the December quarter 2010. Hobart is the only capital not to have recovered to the previous cyclical peak level.” He said.
The prediction for the Australian housing market over the coming year is mixed, according to APM.
“Sydney, Melbourne and Perth have led the capital cities in market activity over the past year, however, rising affordability barriers due to modest incomes growth will act to moderate prices growth in those markets through 2014. Annual outcomes in these cities is likely to be around half of the strong 2013 results. Meanwhile, Brisbane, Adelaide and Hobart are all set to record stronger annual outcomes for house price growth over 2014 compared to the 2013 results as confidence returns to these markets,” Wilson said.