New data released this week reveals that Sydney house prices have risen again, with prices now sitting at $1.18 million – an increase of 1.6 percent.
While this news from the latest ‘Domain State of the Market Report’ may not come as much of a surprise, it was the data on apartment prices that shocked people. Over the past three months Sydney apartment prices have risen 3.2 percent to a median of $757,9991.
“We’ve got units popping up like mushrooms, I expected this would be more of a dampener on prices. It’s likely at some point in time prices will ease for units,” Shane Oliver, chief economist at AMP Capital tells The Domain.
The slowing house prices reflected in the report doesn’t necessarily mean things will get cheaper though. The Domain reports that it is currently $130,000 more expensive to buy a house than a year ago (an increase of 12.7 percent). Apartments have increased by 10.5 percent during this same period.
House prices continue to rise, but there may be a sense of hope.
“Without further cuts to interest rates, the days of double-digit growth are over,” Andrew Wilson, chief economist at Domain Group tells The Domain.
Instead, according to Wilson, prices will grow “slowly but steadily” in the next few years.
Earlier this year, Sydney was named the second most unaffordable city in the world for housing, and the ninth most expensive city in the world to build in.