Sydney house prices have recorded the slowest annual increase in four years, new property data has revealed, but the median house price still came in at over $1 million.
The June quarter Domain House Price Report recorded a 1.2% increase in property prices in the harbour city over the past year, representing the lowest annual increase in 4 years. However, the median house price is back up above $1,000,000 after a 2.4% rise over the quarter, recording a median house price of $1,021,968.
According to Domain, Sydney’s record median house price was resported in September 2015, at $1,032,899.
Domain chief economist Dr Andrew Wilson said despite the slowest annual growth in four years, Sydney-siders can still growth to continue.
“Last quarter, Sydney house prices dropped below $1 million, but they have bounced back as lower interest rates boost market confidence,” Wilson said,
“The current growth rates are significantly lower than the rises during Sydney’s property boom but, with the revival of investor activity, it’s likely there are more increases coming for the capital.”
On a national level, median house prices were up 1.5% over the quarter, with prices up in almost every capital city.
The exceptions are Perth and Darwin, where steep price falls continued, decreasing 1.7% 0.7%, respectively.
“Perth is feeling the price shock brought on by a surplus of newly constructed apartment buildings that exceeded buyer demand. Coupled with steep annual falls in house prices, the capital is a long way away from returning to a healthy market,” Wilson said.
“Darwin prices have continued to decrease as demand from resource industry workers dwindles in line with the downturn of the mining economy.”
Meanwhile, Melbourne’s housing market managed to hit a record high, with the median house price hitting $740,995, an increase of 1.5%. Melbourne prices have now been increasing for twelve consecutive quarters, and grown a staggering 7.4% over the past year.
House prices in Adelaide and Canberra also hit record highs, rising by 0.9% and 3.1% over the quarter, respectively. The median house price in Adelaide is $498,927, and in Canberra it is $654,306.
Brisbane house prices rose 1.2% and Hobart prices rose 0.3% over the quarter.