Housing boom not quite over for Sydney

by Julia Corderoy29 Jan 2015
Capital city housing markets saw a revival in price growth over the December quarter, according to the latest house price report, with Sydney still leading the way.

The national median house price increased by 2.1% over the quarter, contributing to a 7.1% increase for the year, according to the Domain Group’s House Price Report. The national median unit price increased by 1.7% over the quarter and 6% over 2014.

Dr Andrew Wilson, Senior Economist for the Domain Group, said the national results were still largely buoyed by the Sydney market.

“This quarter’s strong national results are largely due to the momentum of the Sydney market, which is still achieving consistently strong growth.”

Over the December quarter, the median house price in Sydney increased by 4.1% while the median unit price rose by 2.9%. Over 2014, the median house price in the city increased by 14.1% and units were up by 10.4%.

“Thanks to its status as the strongest capital city economy with high migration levels, a chronic shortage of housing and heady levels of confidence from buyers and sellers, Sydney remains the dominant force amongst the capital cities,” Wilson said.

The report also revealed that Darwin was the only capital city to record a fall in house prices over the December quarter. The median house price fell sharply by 6%. Unit prices in the city also recorded a decrease of 4.3% over the three months.