Australia’s most expensive city just got more expensive with the median house price fast approaching $700,000.
Sydney house prices have risen 2.7 per cent over the June quarter to reach an all-time high of $690,064, figures from Australian Property Monitors show.
Sydney continues to tower above the national house price median, which grew 2.8 per cent to a new peak of $564,325.
The senior economist at APM, Andrew Wilson, said the property market had been “jet-propelled by the lowest interest rates in decades, rising confidence and continued generally solid economic performances”.
Year-on-year house prices in Sydney have jumped by 6.7 per cent – three times the rate of inflation.
Apartment prices are also on the up, rising by 2.4 per cent in Sydney over the June quarter to a new high of $491,845.
Nationally, the apartment median increased only 2 per cent to $427,573.
Across Sydney, sellers are rejoicing. Last Saturday at auction, Gaby Ferreyra sold her unrenovated four-bedroom terrace at 66 Probert Street, Newtown for $1,120,700 – $120,000 over reserve.
She bought the property in late 2010 for $855,000 and did some “cosmetic updates”.
Ms Ferreyra was ecstatic the value of her home had increased by 31 per cent in less than three years.
“I never believed it was worth this much,” she said after the auction.
The house was bought by an investor who now represent 52 per cent of all home loans, according to May data from the Australian Bureau of Statistics.
But owner-occupiers are also spending big bucks.
An three-bedroom apartment in Surry Hills sold on the weekend for $940,000 – $90,000 over reserve.
There were eight bidders competing for the warehouse conversion at 6/47-49 Buckingham Street, Surry Hills.
The older-style one-bedroom apartment with no parking fetched $540,000.
Further price increases don’t bode well for potential buyers.
First-timers are still largely absent from the market and those upgrading properties are often overpaying.
“They miss out on two or three and become determined to buy,” said Mr Viewey.
“And when you have three or four frustrated buyers competing you get these ridiculous prices.”
Nationally the housing market is accelerating with all capital cities bar Darwin recording house price growth over the June quarter.
Melbourne was the top performer with houses up 5 per cent and units up 3.7 per cent.