Confidence in the recovery of Australia’s property market has been confirmed with solid growth recorded in all capital cities, new quarterly data shows.
According to the Australian Property Monitors’ December quarter report, the national median house price rose by 2.1 per cent over the year and 1.9 per cent over the quarter.
For the first time, Sydney’s median house price peaked at $656,415 up from the previous record of $650,000, representing a 3.4 per cent increase over the year. The median unit price also reached a record high of $475,314, a 5.6 per cent increase over 2012.
Meanwhile, Melbourne house prices rose by 2.4 per cent over the quarter and median unit prices rose by 1 per cent, the first quarterly rise for two years, although prices still remain down for the year by 2.2 per cent.
In other states and territories, solid growth was recorded in Perth, Darwin, Canberra and Hobart, up by 2.5 per cent, 2.7 per cent, 2.1 per cent and 4.7 per cent over the quarter respectively. Adelaide and Brisbane house prices experienced a modest growth of 0.8 per cent and 0.3 per cent respectively.
Commenting on the report, Andrew Wilson, Australian Property Monitors’ senior economist believes the general improvement to affordability will continue to boast buyer activity and confidence, although the housing market will continue to be predominately affected by local fundamentals.
“Looking ahead, activity will depend on the direction of local economies as it is no coincidence that the better performing housing markets in 2012 reflected better performing economies – particularly in regard to unemployment levels,” Dr Wilson said.
“With a rising sharemarket and an improving international outlook, the general economic landscape and prospects remain optimistic which is unequivocal good news for Australia’s recovering housing markets.”