The Sydney and Melbourne price divide has doubled
THE rivalry between the two cities is centuries old, but now there is a price to be put on the debate. The gap between Sydney has doubled in a year.
AS the door shuts on the financial year, an industry report shows Sydney’s median dwelling price is a whopping $130,000 more expensive than Melbourne’s — almost twice the price gap of the same time last year.
While it is no surprise to savvy followers of the real estate market that Sydney is Australia’s priciest town in which to buy property, the shock is the gap between Sydney and the rest of the country is widening.
According to the RP Data-Rismark June Hedonic Home Value Index, the median dwelling price (that is houses and units combined) is $690,000 in Sydney, while in Melbourne the dwelling price is $560,000.
At the same time last year, Sydney’s median was $580,000 while Melboune’s was $512,000 — a gap of just $68,000.
By the end of June this year, the median dwelling price for Australia’s combined capital cities was $545,000, but 12 months ago it was $491,000.
Across the country prices have ended the financial year on a high with the latest figures revealing a 10.1 per cent increase compared to 12 months ago.
The RP Data-Rismark June Hedonic Home Value Index results report that values went up by 1.4 per cent during June alone.
RP Data research director Tim Lawless said the national increase in June made up some of the ground lost by the 1.9 per cent drop in May.
Mr Lawless said, “With interest rates remaining low for the foreseeable future, it is doubtful that housing values will start to slide, at least not at a macro level. What is more likely is that natural affordability constraints will start to dent buyer demand, as will the low rental yield scenario’s that are very much evident across the largest capital cities of Melbourne and Sydney.”
Highlights over the three months to June 2014
Best performing capital city: Sydney is up 1 per cent
Weakest performing capital city: Melbourne is down 2.4 per cent
Highest rental yields: Darwin houses 6.1 per cent and units at 5.9 per cent (gross)
Lowest rental yields: Melbourne houses 3.4 per cent and units at 4.3 per cent (gross)
Most expensive city: Sydney with a median dwelling price of $690,000
Most affordable city: Hobart with a median dwelling price of $328,000
Highlights over the three months to June 2013
Best performing capital city: Sydney and Adelaide are up 1.2 per cent
Weakest performing capital city: Darwin is down 2.7 per cent
Highest rental yields: Darwin houses 6.2 per cent and units at 6.2 per cent (gross)
Lowest rental yields: Melbourne houses 3.7 per cent and units at 4.4 per cent (gross)
Most expensive city: Sydney with a median dwelling price of $580,000
Most affordable city: Hobart with a median dwelling price of $316,000