Sydney prices climb up and up

Sydney-saw-a-large-percentage-increase-in-its-house-prices_157_77708_0_14100829_300Investors will no doubt be cheering from the latest news coming out of the Sydney housing market.

The Sydney market yet again was top of the heap among capitals when it came to median house prices, demonstrating the city’s property market’s continued potential for capital growth.

Sydney’s median house price rose by 17 per cent¬†over the June quarter, well above any other city, according to the latest quarterly report from Australian Property Monitors (APM). Melbourne, the next highest, was a whole seven points lower.

This puts the current median house price at $811,837, a new record high.

Sydney’s median unit price also saw an impressive increase, though less than its house market. It rose by 3.9 per cent over the June¬†quarter, suggesting that investors would pay to look to units as investment options, too.

“December 2013 was the high watermark for Sydney’s current growth cycle, however, the market continues to perform,” commented APM Senior Economist Dr Andrew Wilson.

This is encouraging news out of Sydney. With prices climbing ever higher in the Harbour City in recent years, there has been some worried speculation from observers that the Sydney housing market was due for a decline. The movement by the New South Wales capital from strength to strength indicates that the market is not slowing down any time soon.

Sydney’s home value gains are all the more impressive given that it was the only capital to see an increase in real terms. Most price changes are typically recorded without being adjusted for inflation, which tends to skew the value.

Accounting for inflation, every capital apart from Sydney experienced a decline in real terms in their home values, according to RP Data figures. Sydney’s house price rose by 4.3 per cent on its previous peak, by contrast.

Investors looking to make a real return on their property investment would therefore do well to look to Sydney.

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