Domain have just released their quarterly report on House prices around the country.While the market has increase there is no doubt we now have a two speed House Economy with both Sydney and Melbourne leading the way. The following is part of the report. For the full downloadable report go to www.domain.com.au
Domain House Price Report September Quarter 2016 Dr Andrew Wilson Chief Economist for Domain For further information please contact: media@domain.com.au | 1800 817 616
Key findings
Record high prices in Sydney, Melbourne and Canberra § Melbourne is the top market performer for price growth §
Solid house price increase in Hobart § House price decreases in Perth, Darwin, Brisbane and Adelaide § National median house price up 1.7 per cent over the quarter and 3.5 per cent year-on-year
Domain House Price Report – September Quarter 2016 This Report has been compiled by Domain Group.
A Fairfax Media business. Domain House Price Report Sydney
The boom is back for Sydney, with house prices reaching a new record level of $1,068,303, a 2.7 per cent increase and the strongest quarterly growth rate since September 2015.
Despite strong quarterly growth, house prices in Sydney have only increased 2.1 per cent over the past year, which is the lowest annual growth rate for the capital since September 2012.
Sydney unit prices reached $685,865 this quarter, a solid 1.1 per cent increase and an annual growth of 0.9 per cent. “The Sydney market has climbed over winter and into spring with the median price surpassing last year’s boom-time record.
Lower interest rates and a strong local economy have fuelled house price growth while unit prices also continue to rise despite significant levels of new apartment construction.
With buyer and seller confidence high, further increases can be expected for the remainder of 2016,” said Domain Chief Economist, Dr Andrew Wilson.
Melbourne Melbourne house prices have also hit a new record of $773,669, a quarterly price growth rate of 3.1 per cent and annual increase of 9.1 per cent.
This is the capital’s sixteenth consecutive quarter of growth. Melbourne unit prices have also increased sharply to $466,779, a growth rate of 4.5 per cent over the September quarter and 5.5 per cent over the past year.
“The Melbourne housing market continues to grow at the fastest rate of all the Australian capital cities. With a strong spring auction market ahead, robust price growth is likely to continue through 2016 as demand pushes ahead of supply.
Melbourne’s high levels of migration mean that record levels of new apartment construction is not impacting unit prices which continue to grow,” said Domain Chief Economist, Dr Andrew Wilson.
Domain Chief Economist, Dr Andrew Wilson, said: “Low interest rates, increased investor activity, strong migration and robust local economies have fuelled rising buyer momentum in both the Sydney and Melbourne markets.
A relative shortage of listings and increased interest from investors will continue to drive price growth in these capitals for the remainder of 2016.
“Canberra house prices consolidated recent solid gains and Hobart house prices rebounded strongly over the quarter, while apartment prices fell. “Prices fell marginally in Adelaide and Brisbane following recent positive results and house prices continue to decline sharply in both Perth and Darwin. Local economic performance will determine whether there is a return to price growth in these capitals over the remainder of the year.”
Australia has a two speed property market, with some capitals hitting record high prices while other markets weaken – according to the September quarter Domain House Price Report.
Overall, the national median house price increased by 1.7 per cent over the quarter, but varying levels of local supply and demand are delivering mixed results for individual capitals.
Melbourne and Sydney prices have hit new record highs, with both capitals growing at the fastest rate in over a year.
For more information regarding the Forster Real estate market contact Margaret Price real estate on 02 65557211
