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How are Sydney
prices tracking?
Sydney remains the top performer of all capital city housing
markets as it has been for the past two years. Annual price
growth remains the strongest in this cycle since the early 2000s
with no sign of waning. Lower interest rates will continue to fuel
growth in the Sydney market particularly given the nation-leading
performance of the Sydney and NSW economies.
Record levels of investor activity remain a significant contributor
to the Sydney market’s price growth, balancing the low market
participation of first home buyers. Sydney’s strong growth was
observed in all regions and across all prices ranges.
Although construction levels have accelerated over the past two
years, an underlying shortage of housing remains a key driver of
price growth. Most of the increase in dwelling construction has
been in units, which provide more of a medium term rebalancing
of dwelling undersupply. Although not as strong as house price
growth, unit prices have nonetheless recorded significant growth
over the past year; up by 10 per cent. Demand for units reflects
not only affordability and proximity imperatives but also a growing
preference for apartment lifestyle in Sydney.
Yearly median price growth by region
Houses
Units
Data source: APM
Top 10 cities
/ property type, March Qtr 2015
Yearly median price growth
Melbourne Units
Hobart Units
Brisbane
Houses
Canberra
Houses
Adelaide
Houses
Adelaide Units
Darwin Units
Melbourne Houses
Sydney Units
Sydney Houses
17.9%
10.0%
9.4%
6.2%
5.3%
4.5%
4.1%
2.8%
2.4%
1.8%
Sydney’s North West leads the pack
Investors driving Sydney’s growth
Sydney’s North West suburban region continued to record strong
growth over the past year with median house price increasing by
23.1 per cent.
The Inner West was the next best performer with prices up by
21.2 per cent, followed by the South West region where prices
grew by 20 per cent. The Blue Mountains was the underperformer
of Sydney’s local suburban regions although annual price growth
remained at a healthy 10.2 per cent.
The Central Coast produced the best unit price result over the
past year, increasing by 14.5 per cent. It was followed by the
West where prices grew by 12 per cent and the South West
which rose by 11.9 per cent.
Sydney remains the top performer of all capital city housing
markets as it has been for the past two years. Annual price
growth remains the strongest in this cycle since the early 2000s
with no sign of waning. Lower interest rates will continue to fuel
growth in the Sydney market particularly given the nation-leading
performance of the Sydney and NSW economies.
Record levels of investor activity remain a significant contributor
to the Sydney market’s price growth, balancing the low market
participation of first home buyers. Sydney’s strong growth was
observed in all regions and across all prices ranges.
Although construction levels have accelerated over the past two
years, an underlying shortage of housing remains a key driver of
price growth. Most of the increase in dwelling construction has
been in units, which provide more of a medium term rebalancing
of dwelling undersupply. Although not as strong as house price
growth, unit prices have nonetheless recorded significant growth
over the past year; up by 10 per cent. Demand for units reflects
not only affordability and proximity imperatives but also a growing
preference for apartment lifestyle in Sydney.
Houses
Units
Central Coast
City and East
Blue Mountains
South West
Inner West
North West
23.1%
21.2%
20.0%
10.2%
11.1%
12.6%
Bottom 3
Top 3
Northern Beaches
Canterbury-Bankstown
Lower North Shore
South West
West
Central Coast
14.5%
12.0%
11.9%
2.7%
4.8%
6.3%
Bottom 3
Top 3
t
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Top 10 cities
/ property type, March Qtr 2015
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remained at a healthy 10.2 per cent.
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