"From a total returns perspective, Sydney once again stood out as having provided the most outstanding performance.
Combining the capital gain with the gross rental yield over the year has provided Sydney home owners with a total return of 20.2 per cent over the financial year."
That is some year for Sydney. The broad middle market outperformed nationally:
"Across the different price segments of the housing market, the broad middle -priced sector of the market is now showing the highest rate of annual change.
Dwelling values at the most affordable end of the capital city housing markets have moved 8.8 per cent higher over the past year compared with a 10.3 per cent capital gain across the most expensive suburbs and a 10.6 per cent increase across the broad middle fifty per cent of the capital city market."
As for the unusual theory that apartment prices in Sydney may possibly have peaked, RP Data's index saw unit prices leap by 3.9% m/m in June to median of $585,000 to be up 12.2% y/y (click image):
Source: RP Data
Sydney's apartment rents have continued to rise strongly over the past five years, so yields on units have remained at 4.6%, as compared to only 4.3% for units in Melbourne.
Nationally the picture is much more subdued, with prices having declined over the past quarter in Adelaide, Melbourne, Hobart, Canberra and Darwin...and thus, nationally.