Strong growth in house prices led by Sydney

8.11.13A record surge in Australia’s average house price in 2013 largely has strong activity in Sydney to thank, according to the latest House Price Report: December Quarter 2013 from the Australian Property Monitors (APM).

The report was released this month and highlights the significance of Sydney’s property market, where the average house price increased by 15.1 per cent between December 2012 and December 2013.

The next highest year-on-year growth was seen in Melbourne, however this lagged well behind Sydney at 8.6 per cent.

Sydney propels Australian house prices

“The national house price growth reflects an extraordinary contribution from Sydney where prices increased by 6 per cent” between the September and December quarter, read the APM report.

It was noted that this figure is “the second highest quarterly rise on the record for the city.”

The strength of 2013’s final quarter was highlighted by a flurry of activity. Growth is expected to continue in 2014, however the APM predicts that it will be slower than this record-setting quarter.

Strength in units

The stratified median prices for units rose 4.3 per cent between the third and fourth quarter of 2013, showing that these sorts of dwellings are also reaping rewards for investors and home buyers.

Year-on-year growth was behind house price growth, however it still bet the national average.

Average unit prices increased by 10.9 per cent between December 2012 and December 2013 in Sydney.

This rate was the highest in the country, making the NSW capital an ideal option for property investors wishing to purchase units.

Nationally, unit prices increased by 8 per cent over the same period. Other than Sydney, the only capital cities with above-average growth were Perth (9.3 per cent) and Darwin (8.4 per cent).

Unit prices in Sydney have soared to an average of $541,992, which sets a new record for the bustling city.

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