April 01, 2015
The amazing run of capital growth in the Sydney property market continues unabated, with research from CoreLogic RP Data showing values increased 3.0 per cent for the month of March.
The strong monthly result in Sydney pushed the annual growth rate to 13.9 per cent and the median dwelling price to $690,000.
Since the current growth phase commenced in June 2012, Sydney dwelling values have increased by 38.8 per cent, well above the combined capital cities figure of 24.3 per cent.
In Melbourne the monthly growth figure was 0.6 per cent, for an annual growth rate of 5.6 per cent and median dwelling price of $518,000.
The Sydney result is even more remarkable considering the remaining capital cities recorded annual growth rates of less than 3 per cent, with Perth, Darwin and Hobart recording negative annual growth.
According to CoreLogic RP Data head of research Tim Lawless, low interest rates and investor demand appear to be driving the Sydney market, however he warns investors to be cautious entering the market at present.
"When the Sydney housing market starts to lose momentum, there is some risk that recent investors could be left holding a very expensive but low yielding asset with a lower than expected rate of capital gain over the coming years." Mr Lawless said.
The full CoreLogic RP Data results and commentary can be viewed here.