The price of home in Australia’s capital city
The price for a single-family home in Sydney’s western suburbs has climbed nearly 10 per cent in the past month to a record $3.4 million, according to data from CoreLogic.
In Melbourne, the median price for single-detached homes rose 8 per cent to $2.5 million in July.
Sydney’s median price rose 2 per cent year-on-year, but the median increase for detached houses was just 0.5 per cent.
The median price of detached houses rose 3.7 per cent last month to $1.3 million.
Sydney also experienced the largest increase in median house prices over the past year.
“We’re seeing a lot of price growth in the Sydney CBD, but it’s not the same as the rest of the state,” says John Williams, a CoreLogical research analyst.
“It’s just more concentrated in the outer suburbs, where the median prices are rising more rapidly than in the inner city.”
The median Sydney house price is currently at $2 million, up 1.3 per cent over the same period last year.
Melbourne’s median house price has risen by a similar rate to Sydney’s, but CoreLogics says the median has increased by 5 per cent since the start of the year.
A median house in Sydney now costs $2,800 more than a median house sold in Melbourne in the year to July 31.
The price is up just 4 per cent on the year and 5.4 per cent compared with a year ago.
“Sydney has definitely overtaken Melbourne in terms of house prices,” says Mr Williams.
“If you look at the numbers, Sydney has a bigger median house and it’s the price of the median house over the last year.”
While the increase in house prices in Sydney has been fuelled by the economic slowdown, it is not the only factor.
“Australia’s housing market is in the midst of an extraordinary boom,” says Josh Low, senior economist at the Australian National University.
“The cost of housing is skyrocketing.”
In Melbourne and Sydney, median house values have increased by around 8 per of the previous 10 years.
In the capital city, the rate of growth has been around 6 per cent a year, but has increased to 11 per cent as house prices have risen.
Melbourne house prices are set to grow by another 10 per year until 2023, when they are set for a 10 per in the next decade, says Mr Low.
Sydney house prices could double to about 30 per cent by 2023 if the housing market continues to boom, he says.
Mr Williams is hopeful that Australia’s economic boom will continue.
“I think the Australian economy is very strong,” he says, “and that will be enough for the economy to continue to grow.
But the question is will the economy continue to boom?”
If that does not happen, he predicts that “the housing market will come down a bit, and prices will fall a bit.”
Read more about housing:The data comes as Melbourne’s property market continues its upturn.
The number of new listings rose by 6 per month in July to 6,929.
The next month saw the highest number of sales since June 2017, with 6,000 new listings recorded.
“This is an area of the economy that is still very weak and in need of some sort of support,” Mr Williams says.
In contrast, Sydney’s property boom has been much slower. “
In the end, if that doesn’t happen, prices will come up a little bit and that will further drive up house prices.”
In contrast, Sydney’s property boom has been much slower.
The total number of listings in July was 2,814, up 5 per year on the previous month, and was up 5.1 per cent from the previous July.
This means Sydney’s market has seen just a fraction of the growth in prices that Melbourne’s has.
The last time that Sydney’s housing markets saw such a huge jump in listings was in 2015, when there were 1,600 more listings than there were in July 2017.