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Sydney houses achieve record annual growth as other markets retract

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18 Aug

Sydney houses achieve record annual growth as other markets retract

launch-admin Aug 18, 2015 0 640


MEDIA RELEASE

Sydney houses achieve record annual growth as other markets retract 

Onthehouse.com.au Market Analyst Eliza Owen says Sydney and Melbourne markets continue to drive growth as other states fall behind

Australia, 3 August 2015: New research released today by Onthehouse.com.au revealed that Sydney’s housing market has documented a record high annual growth rate for the current housing boom, growing 20.36 per cent in the 12-month period to June 2015. This is the median rate of growth for all houses in the Sydney region, which stretches all the way from the Eastern Suburbs to the suburbs just before the Blue Mountains.

However, while growth in Sydney as a whole continues to excel, there are suburbs across the region that are outperforming the city’s median.

The following table demonstrates the top five growth suburbs in the year to June:

Sydney Houses

Suburb

Postcode

Median Value

Growth

June 2014 – June 2015

Last Quarter

Last Month

CHERRYBROOK

2126

$1,318,000

33.71%

9.56%

2.13%

EPPING

2121

$1,670,500

32.80%

8.47%

2.25%

HOMEBUSH

2140

$1,525,000

31.83%

7.39%

4.25%

CANLEY VALE

2166

$740,500

31.02%

9.18%

3.45%

DENISTONE

2114

$1,518,500

30.31%

11.82%

3.54%

Source: Onthehouse.com.au

In stark contrast, Perth recorded the worst performance across all Australian housing markets during the same annual period, falling by -1.05 per cent. However, the state’s unit market recorded a growth rate of 0.16 per cent, making it one of four areas where unit market annual growth rates exceeded their respective housing markets. 

Brisbane, Hobart and TAS Country made up the three other regions that recorded a stronger annual performance in their unit markets than their housing markets, documenting unit growth rates of 3.10 per cent, 5.93 per cent and 3.48 per cent, respectively. Darwin suffered the worst contraction in the unit market for the year, falling by -5.31 per cent.  

An Australia wide aggregation of the property market displayed strong annual growth overall, with 6.28 per cent for houses and 6.06 per cent for units, however, it is clear from the data that the Sydney market is the clear driver, with the current median house price of $993,500 falling just shy of the $1 million benchmark.

The following graph demonstrates the housing and unit market performance of each capital city in the 12 months to June 2015:




Source: Onthehouse.com.au

Market Analyst at Onthehouse.com.au, Eliza Owen, said: “Australia’s resource markets – Perth and Darwin – have both suffered a contraction in growth as the decline in volumes and values of iron ore are taking their toll. The impact of iron ore exports on these property markets is clear from available trading data, and unless the resource businesses based in Perth and the Northern Territory can sustain low prices for exports, I doubt there will be an improvement in these markets over the next few months. 

“Unlike the resource states, it is harder to identify the source of change in the Sydney and Melbourne markets. There are plenty of anecdotal reports claiming that foreign investment and baby boomer investors are driving up values – and while these factors may or may not be the cause of the current boom – there is currently no data available to prove this is the case,” continued Ms. Owen.

The following table demonstrates the June market performance for houses across Australia:

Houses

Area

Median Value

Growth

June 2014 – June 2015

Last Quarter

Last Month

Sydney

$993,500

20.36%

6.94%

3.37%

Melbourne

$682,000

8.11%

1.41%

0.48%

NSW Country

$407,000

7.95%

2.37%

0.84%

Australia

$498,500

6.28%

1.93%

1.46%

Hobart

$384,000

4.73%

2.48%

-0.05%

ACT

$554,000

4.33%

1.43%

1.10%

VIC Country

$352,000

3.65%

0.96%

0.71%

QLD Country

$391,000

3.39%

1.21%

0.48%

Brisbane

$480,500

2.82%

0.61%

-0.86%

Adelaide

$419,500

2.70%

-0.14%

-0.64%

TAS Country

$269,000

2.06%

1.65%

2.41%

SA Country

$255,500

0.72%

-3.02%

-1.07%

WA Country

$356,500

0.23%

1.94%

1.65%

Darwin

$562,500

-0.73%

-0.87%

1.46%

Northern Territory

$527,500

-0.95%

-1.94%

-0.21%

Perth

$525,500

-1.05%

0.26%

-0.69%

Source: Onthehouse.com.au

The following table demonstrates the June market performance for units across Australia:

Units

Area

Median Value

Growth

June 2014 – June 2015

Last Quarter

Last Month

Sydney

$656,000

15.44%

5.84%

3.24%

NSW Country

$340,500

7.34%

2.63%

1.36%

Australia

$462,000

6.06%

2.77%

2.10%

Hobart

$276,500

5.93%

1.61%

3.77%

TAS Country

$202,500

3.48%

1.77%

0.49%

Melbourne

$477,000

3.18%

1.55%

0.78%

Brisbane

$374,500

3.10%

1.06%

-0.52%

VIC Country

$265,000

2.36%

0.28%

0.21%

QLD Country

$322,500

1.83%

0.26%

-0.06%

Adelaide

$316,000

1.42%

0.38%

1.75%

ACT

$408,500

1.10%

2.12%

1.82%

Perth

$462,500

0.16%

3.66%

0.99%

SA Country

$229,500

-0.45%

-3.81%

2.77%

WA Country

$307,000

-2.65%

-3.42%

-2.52%

Northern Territory

$393,000

-3.66%

-1.66%

-2.34%

Darwin

$407,000

-5.31%

-2.32%

-2.33%

Source: Onthehouse.com.au

To learn more about Onthehouse.com.au’s State Market Reports head to www.Onthehouse.com.au

-ENDS-

Media contacts

Sarah Bond: E: sarah@launchgroup.com.au / T 02 9492 1041 / M 0449 543 181

Laura Blue: E laurab@launchgroup.com.au / T 02 9492 1000/ M 0416 699 925

About onthousehouse.com.au

www.Onthehouse.com.au is Australia’s most transparent and comprehensive real estate portal, empowering consumers to make informed property decisions by providing them with free access to information. Over 1.8 million unique visitors search for listings and view in-depth property data a month, making it Australia’s third most popular real estate platform. 

Onthehouse.com.au is the flagship consumer offering of Onthehouse Holdings (ASX:OTH), the 360-degree property market services group that provides comprehensive real estate agency solutions, information and analytics services. Onthehouse Holdings businesses together help over half of Australia’s real estate agencies, as well as being used by financial institutions and other property-related professionals. 

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