The median house price in Sydney has now hit $1 million, after surging 22.9% over last 12 months, new data has revealed.
According to Domain’s National House Price Report, Australia’s most heated housing market has doubled the national median house price growth of 11.7% and in doing so, its median house price of $1,000,616 has now surpassed that of London and is fast approaching New York. However, solace remains as it is still well behind the property prices of Paris.
Domain’s senior economist, Dr Andrew Wilson says the record low mortgage rates are driving the record high price rises, and strong growth is expected to continue for the city in the foreseeable future.
“The main catalyst has been low mortgage rates — the lowest since the mid-1960s. It’s a perfect storm of local supply and demand factors generating the price growth. A strong local economy, coupled with high levels of migration and a chronic undersupply of housing and record levels of investor activity have also been a significant contributor,” he said.
“Confidence and momentum will continue to sustain the Sydney market through the remainder of 2015, although growth rates are unlikely to match the record-breaking June quarter performance.”
According to the report, other capital cities also reported steady growth, with the Perth and Darwin property markets the only ones to see a drop in median house price value over the quarter.
Nationally, the median house price jumped 4.3% over the quarter – and increase of 11.7% over the year.