Sydney house prices hit record high

The property market’s post-COVID recovery has caused Sydney prices to reach record heights after surpassing the 2017 peak.

Sydney prices have hit an all time high. Picture: NCA NewsWire/Gaye Gerard

Sydney property prices have eclipsed the peak recorded in 2017 to achieve a new record high.

The housing boom in 2016 and 2017 caused property prices in the nation’s largest capital city to surpass $1m for the first time. Now, the post-COVID slump has made way for surging prices, with values in Sydney surpassing earlier highs by 0.1 per cent, according to property researcher CoreLogic’s daily index.

The firm’s executive research director Tim Lawless said the new record was not a surprise given the recent strong capital gains in housing values have led another capital city to move to new record highs.

“The fresh record high is great news for Sydney homeowners, but highlights the challenges for non-home owners looking to participate in the housing market as values rise faster than incomes,” says Mr Lawless.

Since the last boom, Sydney values have fluctuated. From July 2017 to May 2019, dwelling prices fell 15.3 per cent from July 2017 to May 2019 before recovering in excess of 10 per cent following the last federal election as a result of the “ScoMo bounce”. While the outbreak of COVID-19 did hinder the recovery, down around 3 per cent, the market found it’s floor in October and prices have increased a further 5.7 per cent.

As of February 2021, the median dwelling price in Sydney was $895,933. Houses cost a median $1,061,229, up 4.4 per cent annually. Alternatively, unit prices fell 0.9 per cent annually but were up 1.2 per cent last month to achieve a median of $738,254.

The rate of growth in Sydney accelerated last month, with prices up 2.5 per cent. Mr Lawless expects growth will continue at a slower pace through 2021 as the top end of the market surges, money remains cheap and low stock levels persist.

According to CoreLogic’s daily hedonic home value index, Melbourne dwelling values remain 1.3 per cent below their pre-COVID high and Perth values are still 16.9 per cent lower relative to the 2014 peak. Adelaide and Brisbane have been beating their median records for sometime.