Robust market conditions continue to drive house price growth in most capital cities with Melbourne and Sydney leading the pack with more boom-time results.
Latest Domain market intelligence reports that the national median house price increased by 3.7 percent over the three months ending November to a new record spring high of $774,799. The national unit price also increased over the spring quarter rising by 3.2 percent to $550,150.
The national house price is now 6.1 percent higher than that recorded over spring 2015 with the national unit price increasing by 4.2 percent over the past year.
All capitals reported increases in house prices over the spring quarter with the exception of the subdued Perth market where prices fell by 0.5 percent and Darwin where the median house price was steady.
The Melbourne and Sydney markets continue to produce strong results with the Sydney median increasing by 4.9 percent over spring to a new record high $1,106,415 – an increase of 7.4 percent over the past year.
Melbourne also recorded a sharp increase in house prices over spring with the median increasing by 5.0 percent to a new record $798,367. Melbourne house prices have now risen by 9.8 percent over the past year – the strongest annual growth of all the capitals.
Unit prices in Sydney and Melbourne also increased solidly over the spring quarter with Sydney up by 3.6 percent to $712,002 and Melbourne rising by 6.0 percent to $472,667. By contrast Brisbane and Perth unit prices continue to fall – down by 1.7 percent and 2.6 percent respectively.
Australia’s capital city housing markets have generally continued to report robust selling conditions through spring with prices on the rise. Low interest rates, increased investor activity, solid economic performances, high migration and heady confidence continue to fuel the Sydney and Melbourne markets.
December auction clearances rates continue to reflect strong underlying market conditions despite an unprecedented end of year rush to market by sellers. Although signs are increasing of subdued and weakening economic activity, the prospect for housing markets and prices growth – particularly in Sydney and Melbourne – remain positive for 2017.
Dr Andrew Wilson is Domain Group Chief Economist Twitter@DocAndrewWilson join on LinkedIn and listen 2UE Lifestyle Radio Fridays 11am and Mondays 5pm, 4BC Saturdays 830am.