SYDNEY property prices jumped more than 13 per cent in the past year despite speculation of a looming market crash, new figures have revealed.
Sydney looks set to remain the country’s property powerhouse, according to the new data from CoreLogic, with the median dwelling price rising 13.1 per cent to $845,000 in 2016.
Sydney outpaced every other city in the country- achieving triple the growth of Brisbane which saw a mere 3.9 per cent rise in prices.
While the rate of growth was slightly reduced from last year’s results, experts said the figures suggested there was no looming “market crash”.
In the past five years, Sydney’s average dwelling price had jumped a whopping 67.3 per cent.
But while house prices had boomed, the accelerated growth means Sydney now has the lowest rental yields in the country- with an average 2.8 per cent yield for houses and 3.8 per cent for units.
CoreLogic research director Tim Lawless said with rental markets remaining soft it was likely yields would fall further as property prices increased.
But he said this wasn’t putting off investors.
“With rental markets remaining soft, it is likely there will be further yield compression across those markets where residential property values are rising,” Mr Lawless said.
Property listings were also 9.4 per cent lower than this time last year. Mr Lawless said this was fuelling the competitive market.
“Lower stock levels in these markets are likely to be one factor contributing to the upwards pressure on dwelling values,” Mr Lawless said.
“Vendors are still very much in the driver’s seat in these markets and buyers have little in the way of leverage to negotiate, or time to consider their purchase decision.”
CoreLogic auction commentator Kevin Brogan said the double digit growth in the Sydney market flew in the face of market speculation of a looming crash.
“There was speculation that prices might fall, but with 13 per cent growth it continues to be strong, even if the rate of growth has declined slight,” Mr Brogan said.
PROPERTY PRICE GROWTH ACROSS THE COUNTRY
Sydney: + 13.1%. Median dwelling price: $845,000.
Melbourne: +11.3%. Median dwelling price: $623,500
Brisbane: +3.9 %. Median dwelling price: $485,000
Adelaide: +4.7%. Median dwelling price: $420,000
Perth: -3.4%. Median dwelling price: $490,000
Hobart: +8.5 per cent. Median dwelling price: $336,000
Darwin: +1.1 per cent. Median dwelling price: $480,000
Article by The Daily Telegraph (Annabel Hennessy)