This article is from the Australian Property Journal archive
THE national median house price has reached to a new record of $597,556, up 3.7% during the December quarter – the strongest increase in four years, according to Australian Property Monitors' Quarterly Housing Report.
APM found that for the first time in four years, all capital cities recorded growth in house prices over the December quarter, taking the annual gain to 9.8% – also the best annual result since 2009.
APM senior economist Dr Andrew Wilson said the Sydney housing market was a star performer throughout 2013 with extraordinary December quarter buyer activity.
“All capital city median house prices are now at or close to new records thanks to 2013’s combination of low interest rates, reasonable economic performance and rising confidence,” he added.
Sydney’s median price rose 6% during the quarter and 15.1% over the year taking it to a record high of $763,169. This was the strongest calendar year growth in house prices recorded since 2003.
Dr Wilson said the Sydney market has been supercharged by record levels of investor and changeover buyer activity in the $1 million to $2 million price ranges – particularly in the upper North Shore and inner west suburban regions.
“The current level of price growth in Sydney, however, is unsustainable – particularly given the likely continued deterioration of the local economy and the prospect of a flood of new rental properties overshooting underlying market fundamentals,” he predicted.
In second place, Melbourne house prices increased by 3.2% over the quarter and 8.6% over the year, reaching a new peak of $568,824 — exceeding its previous price high in June 2010. The median unit price at $421,759 is also a new record, up 6.8% over the year.
And trailing not far behind was Perth, with a 1.8% quarterly and 8.4% annual growth to $605,856.
Dr Wilson said last year’s buyer momentum will ensure a positive start to 2014, however prices growth is set to moderate over the year as economic activity wanes.
“Brisbane and Perth, however, are likely to be exceptions driven by strengthening local economies
“Prices growth in Sydney and Melbourne is set to be significantly less in 2014 compared to 2013 with most activity occurring over the first half of the year. The Perth market will remain solid this year while Brisbane house price growth is set to accelerate as the local economy moves up a gear. Adelaide, Canberra and Hobart, however, will continue to record modest prices growth over 2014 with most activity again likely to be over the first two quarters of the year,” he forecast.
The Brisbane housing market continues its steady revival with the median house price increasing by +2.1% over the December quarter – the best quarterly result in four years. House prices increased by +5% over 2013, taking them just -2.2% below the previous price peak of June 2010. Unit prices are up by just +0.4% over the year.
Adelaide is showing positive signs of a sustained recovery in house prices with the December quarter median increasing by +1.7% – the third consecutive quarterly rise. Over 2013, Adelaide house prices rose by +2.8% while unit prices increased by just +0.3%.
The volatile Canberra housing market finished the year positively, recording a solid +2.3% increase in the median house price over the quarter. This followed a fall of -0.9% during the previous quarter. Unit prices fell by -0.7% over the December quarter. Over 2013, Canberra house prices increased by +3% with unit prices up by +1.1%.
The Hobart market continues on the path to recovery with median house prices increasing solidly by +2.8% over the December quarter – the third consecutive rise and the best quarterly result for four years. Over 2013, Hobart’s median house price increased by a solid +5.1% but remains -4.1% below the previous price peak recorded three years ago.
House price growth in Darwin flattened over the quarter with the median house price increasing by just +0.8% while median unit prices remained steady. Over 2013 Darwin houses prices increased by +6.9% with units up by +8.4%.
Property Review
