Sydney property values on the rise

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A new report from RP Data has confirmed that property prices in Sydney are on the rise, with dwelling values in the New South Wales capital increasing by 3.7 per cent over the last three months alone.

The median dwelling price in Sydney is now $570,000, a year-on-year improvement of 6.5 per cent. Out of the eight capital cities, only Perth has seen a greater percentage improvement in property values over the last year.

Sydney has also proved a rewarding prospect for property investors, delivering rental yields of 4.5 per cent for houses and 4.1 per cent for units during that same period.

Overall, capital city dwelling values have risen by 6.5 per cent since the market lull seen in May 2012. Hobart is the only city which has seen dwelling prices decrease over the last 12 months.

In further good news for property vendors, RP Data has also noted that real estate in the capital cities is now spending less time on the market.

A Sydney property owner who puts their home up for sale can now expect to wait just 45 days before finding a buyer – 14 days less than this time last year.

With clearance rates in Sydney remaining close to 80 per cent, it seems now is the time for Sydney real estate owners to act if they are considering selling their property.

Prospective property buyers may also want to act soon, as RP Data research director Tim Lawless has predicted housing affordability could become an issue in the near future if prices continue to trend upwards.

“With the housing market once again showing solid capital gains and rents also rising, the issue of housing affordability is likely to begin attracting more attention,” said Mr Lawless in a statement released August 1.

“[W]ith Sydney, Perth and Canberra values now back at record high levels and some other capital cities not far off their previous peaks, there are likely to be a growing number of households who find it challenging to enter the housing market.”

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