Sydney House Price Grows by Nearly 19%
The median house price in Sydney has registered a nearly 19 per cent increase, according to an article on The Adviser.
From 783k to 930k
According to the Real Estate Institute of Australia (REIA) and Bendigo Bank, the Sydney house price was pegged at $783,000 in the first quarter of 2014, but has since jumped to $930,000 in the first quarter of 2015, an 18.8 per cent increase to be exact.
The median price for apartment units in the capital cities have also shot up by 7.2% over the last year.
There is fear that the change in regulations regarding foreign investment may shift market momentum. However, prevailing low interest rates are likely to help the market continue on its winning ways, contests the article.
You can read the original article here.
Median price closing on the $1 million mark
Trends can deceive but I think median price closing in on the $1 million mark is a trend which is too categorical and should not mislead. We are talking about a country that has come out of its phase of slump in style. Sydney has motored along beautifully and in the process also proved many of the property pundits wrong. After a long overdue correction in the market, Sydney will get its second wind and prices will keep rising for some time.
Government’s stance of shifting the momentum of the economy from the mining sector to the construction sector has worked. The bait was low interest rates and the government has every reason to keep the rate low till it begins to hamper the inflation-GDP equation. Presently, there is good reason to believe that the prices will keep going up albeit in a mellowed away, not like the 15% to 17% growth we have seen in the recent past, but at a smart yet sustainable pace.