Enormous price growth in Sydney’s inner suburbs may indicate a recovery in the property market.
Despite a difficult couple of years for Sydney’s markets, astonishing price gains in the past 12 months are pointing to a true renaissance.
New South Wales figures released by realty group PRDNationwide yesterday revealed house price growth of up to 56.8 per cent in the 12 months to March 2010 – this figure recorded in Sydney’s eastern suburb of Bondi Junction.
North Bondi recorded the second highest price growth of 52.2 per cent.
Also among the top performing suburbs were Lane Cove, Willoughby and Kensington with just three of the state’s top ten suburbs located more than 7km from the CBD – Oberon, Wollongong and Bundanoon.
Dan O’Halloran, PRDNationwide research analyst, said the growth represented a recovery in markets which experienced significant softening during the economic downturn in 2008.
While the figures point to an upswing, Mr O’Halloran warned they also demonstrated the current fluctuations in the market.
In addition to strong growth in the housing market, New South Wales’ units also recorded a revival in prices, with seven out of the state’s ten top growth suburbs located within 10km of the CBD.
Once again Bondi Junction took out the place for top growth with units in this suburb seeing a median unit price increase of 56.1 per cent to $679,000.
Inner city suburbs of Clovelly, Woolloomooloo and Erskineville also experienced strong unit price growth while Campbelltown, approximately 65km south west of the city came in fourth with 51.4 per cent unit price growth.