The increase in the Sydney median house price to over $1 million has been caused by price growth in Sydney's West and South, not Sydney's sought after inner city suburbs, according to the Real Estate Institute of New South Wales.
REINSW President Malcolm Gunning says prices have increased from the “bottom up”, which has seen the median house price rise.
“We have seen significant growth in Sydney at the lower end of the scale which has in turn driven the median house price above $1 million,” he said.
“Inner city suburbs prices would seem to be starting to level out. The Shire is seeing keen interest as well as areas in Sydney's West.”
According to Gunning, the median house price will continue to rise as those seeking to purchase a property are drawn to more affordable areas.
“Sydney is an international city and the allure of its beaches and high job growth areas will continue to support increased prices especially while interest rates remain at record lows.”
The Domain Group House Price Report for the June Quarter saw the median house price in Sydney up 8.6%, reaching $1,000,616.