The Australian Property Monitors’ Quarterly Housing Report revealed Sydney and Melbourne were the best performers of the major capital cities over the three months to the September quarter, sustaining an otherwise mixed national market.
National median house prices rose moderately by 2.2 per cent over the quarter, the fourth consecutive quarterly rise in the national house price, while national unit prices also rose over the quarter, up by 1.2 per cent.
Sydney median house prices increased by a strong 4.2 per cent over the September quarter to $722,718, and was the first capital city to reach this milestone.
Similarly, Sydney unit prices rose by 3.3 per cent, breaking the $500,000 barrier to a record median of $510,000.
The Sydney median house price is now 11.6 per cent higher than the previous price peak recorded in June 2011, and has increased by nine per cent over the first nine months of this year – the best result of all the capitals.
The Melbourne median house price also rose by 2.2 per cent over the quarter. However, the market remains in catch-up mode, with the median still 1.8 per cent below that recorded in June 2010.
“Although the national median house price had a solid increase over the quarter, this outcome primarily reflected strong contributions from the Sydney market and to a lesser extent, the Melbourne market,” said senior economist for Australian Property Monitors Dr Andrew Wilson.
“Despite the influence of the lowest interest rates in 60 years generating buyer and seller interest, local supply and demand factors continue to drive housing price growth.
“The Sydney and Melbourne housing markets will continue to see solid to strong market activity over the remainder of 2013, with most other capitals at best recording modest price growth."