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Sydney’s median house price nears $1.5 million as prices skyrocket during COVID-19


Sydney’s median house price is now just an auction paddle away from a record-breaking $1.5 million as the nation’s property market continues to boom during the COVID-19 pandemic.

Domain’s September Quarter 2021 House Price Report has revealed that in the last twelve months, Sydney’s house prices rose by an average of $6700 a week, or $957 a day.

More than $349,000 was added to the Harbour City’s median price, which saw the fastest annual growth ever recorded at a wallet-squeezing 30.4 per cent.

Domain’s Chief of Research and Economics, Dr Nicola Powell, told 9News.com.au that COVID-19 induced restrictions had prompted many Australians to think about the lifestyle their property provides.

“We have seen phenomenal levels of demand in the market, and we’re seeing total stock for sale hit multi-year lows. I think what the pandemic has done is really put our homes into focus – we’ve spent more time in them, they’ve become our everything in and out of lockdown,” Dr Powell said.

“Homeowners are putting spare cash normally spent on travel into their home. That’s partly why we’ve seen this high level of demand for property over the past year as people fast track their decisions.”

Nationally, Australia’s median house price has risen 21.9 per cent over the last twelve months to hit a new high of $994,579, marking the fastest annual growth on record.

Despite the doom and gloom headlines for first home buyers – or heaven-sent conditions for downsizers – Dr Powell said there are signs that the property market is cooling.

“I think we’re past the peak rate of growth, but in terms of price, the price point of houses will continue to rise higher,” Dr Powell said.

“We’re seeing the property market begin to cool down with soaring house prices in the last year adding to ongoing affordability pressures affecting buyers’ participation in the market.

“As COVID-19 lockdowns and restrictions come to an end and the sustained high prices appeal to vendors, sellers are beginning to re-engage with the market, increasing supply which in turn offer greater choices for buyers”

Sydney’s median house price is just shy of $1.5 million, having grown by almost a third in just 12 months. (AAP)

It wasn’t just Sydney that saw house prices skyrocket due to a myriad of factors including high demand, low stock, historically low interest rates and drastically lower discretionary spending during COVID-19 lockdowns.

Melbourne’s median house price rose to $1.038 million despite being in lockdown for most of last quarter. Canberra is now the second most expensive capital city to purchase a home and Hobart’s house prices have almost doubled over the past five years.

The only capital city to experience negative house price growth in the past three months was Perth, which saw a 0.6 per cent decline to a median of $598,601.

“New listings will need to continue to be strong to appease rising prices,” Dr Powell said.

“The number of Aussies relocating to Perth has reached its highest point in eight years – while there remains a positive inward flow into Perth, it looks to be easing but is being replaced with higher investment activity.”

Nationally house prices have risen by more than 21 per cent over the past 12 months, marking the fastest annual increase on record. (Supplied)

As house prices jackpot, so too do concerns that property in Australia is becoming unaffordable for those on normal wages and who do not have existing equity.

“The sheer affordability of keeping up with rapid house price gains is proving a barrier for many buyers, especially first home buyers facing spiralling deposit goals and poor interest accrued on savings,” Dr Powell said.

“Upsizing is also becoming a financial leap despite the benefit of strong equity growth, and particularly challenging if sold prior to purchasing.”

Australia’s Median House Price Change by Capital City*

Capital City:

Annual change in price:

Median Price:

Sydney

+ 30.4 per cent

$1,499,126

Melbourne

+ 16.8 per cent

$1,037,923

Brisbane

+ 15.3 per cent

$702,455

Adelaide

+ 20.1 per cent

$667,888

Canberra

+ 32.4 per cent

$1,074,187

Perth

+ 9.8 per cent

$598,601

Hobart

+ 31.9 per cent

$698,212

Darwin

+ 33.2 per cent

$640,068

Combined Capitals

+ 21.9 per cent

$994,579

* Domain’s September Quarter 2021 House Price Report

Bondi Beach property sells for $1 million over reserve

The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.



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