Sydney’s median home price hits shock new high: PropTrack
Sydney’s home values have already clawed back their losses from the RBA’s massive rate hike as record high prices are hit.
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Sydney’s home prices have hit a record high as the city continues to lead Australia’s home price recovery.
PropTrack’s latest Home Price Index has revealed home prices in Sydney rose 0.37 per cent in October, having now recovered from last year’s falls.
Despite continued affordability challenges and a potential looming rate hike, Sydney’s home prices are now up 7.62 per cent from a year ago.
Sydney’s median dwelling price is now sitting at a shocking $1.07m – considerably higher than the rest of the country, with Melbourne’s median sitting at $815,000 and the ACT at $848,000.
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Prices in Sydney are now almost one third higher than pre-pandemic levels in March 2020, and have surpassed the previous peak in February 2022 by 0.32 per cent.
PropTrack senior economist Eleanor Creagh said the October rise marked 11 straight months of home price rises for Sydney — the longest period of growth since the pandemic upturn.
“Listings have rebounded in Sydney and we’re seeing increasing confidence among sellers, but strong buyer demand continues to absorb the flow of new listings hitting the market and prices are continuing to lift,” Ms Creagh said.
Strong overseas migration numbers and challenging rental conditions were also contributing to the rise in prices.
“Typically around 70 per cent of net overseas arrivals rent, so one could speculate that the share is lower given how challenging rental market conditions are, and the weaker Aussie dollar could be allowing those with the means to do so to purchase sooner than they otherwise would have,” Ms Creagh said.
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Regional NSW’s home prices also increased in October, rising 0.33 per cent, with a median dwelling price of $712,000. Despite the upturn, regional NSW prices are still 1.68 per cent lower than their most recent peak.
Across the country, Australia’s home prices set a new record in October in line with the popular Spring selling season.
National prices increased 0.36 per cent in October, with an increase of 4.93 per cent this year so far.
It comes as the big four banks are all predicting the Reserve Bank will hike interest rates another 0.25 per cent on Melbourne Cup day, after higher than expected inflation and retail trade data.
But Ms Creagh said a 25 basis point increase was unlikely to impact the outlook for continued home price growth.
“Strong demand stemming from the rebound in net overseas migration, tight rental markets and limited housing stock has offset the impacts of substantial rate rises and the slowing economy so far,” she said.
“I wouldn’t see another hike deterring the uptrend.”
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