Sydney outshines the nation’s property growth

It is no surprise Sydney has had a hot property market this year, but the proof is in the numbers.

Proof that Sydney’s property prices are far outshining the rest of the nation has come to light in a national study released today.

According to the Australian Housing Market Report by RP Data and commissioned by National Australia Bank, combined capital city home values rose by 9.3 per cent over the 12 months to September.

Priscilla Lee from Belle Property putting a sold sign outside a Waterloo property which sold to investors.

During the same period, Sydney’s dwelling values were up 14.3 per cent.

After a blip on the housing horizon post GFC, home values hit a lot point in December 2008.

But since that dip, Sydney home values have increased by a huge 51.2 per cent.

The report showed that the 12-month median price for Sydney houses was $750,000 and $575,000 for units.

While prices are up in Sydney, rental yields are down. The Harbour City actually had the lowest gross rental yield of any Australian capital city at just 3.8 per cent.

But over the year, investors still committed to $4.5 billion in finance in NSW.

Auctioneer Damian Cooley in action on the streets of Sydney.

In Sydney stand out suburbs for price growth included Ramsgate Beach in the St George area, which skyrocketed over the period by 43.7 per cent to a median house price of $1.431 million.

The inner west region also performed highly with Rhodes up by 43.3 per cent to $1.496 million and Homebush which jumped by 42.3 per cent to a median sale price of $1.189 million.

The report showed that despite Sydney having the worse overall rental yield in the country, there are a few hot spots for investors.

In St Marys, where units rent for a median of $360 a week, the gross rental yield was 6.8 per cent. Blackett showed the best yield for houses where a house at $320 a week had a 6.7 per cent yield.

Sydney’s top five for dwelling growth

Ramsgate Beach — 43.7 per cent — $1.431 million

Rhodes — 43.7 per cent — $1.496 million

Homebush — 42.3 per cent — $1.189 million

Mays Hill — 42.1 per cent — $787,375

Manly Vale — 41.4 per cent — $1.255 million

Sydney’s top five for gross rental yields

St Marys — 6.8 per cent — $360 a week

Blackett — 6.7 per cent — $320 a week

Lethbridge Park — 6.7 per cent — $320 a week

Macquarie Fields — 6.7 per cent — $340 a week

Minto — 6.6 per cent — $320 a week