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CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Thursday, 7 May 2015

Sydney house prices and rents rise

Residex results

Following on from a consideration yesterday of whether the Sydney market is "oversupplied", Residex released its latest indices for March 2015.

The Residex figures implied that rents have continued to rise at a strong pace in Sydney both for houses (+8.3 per cent) and units (+5.8 per cent) over the past year.

While city level data can certainly mask divergent underlying trends, typically in an oversupplied market house rents would be seen to decline rather than rise at a pace several times the rate of inflation.

House prices in Sydney continued to rise strongly at 3.2 per cent over the first quarter and 16.8 per cent over the past year, eclipsing growth in the unit market (+2.2 per cent for the quarter and +12.9 per cent over the year).



Source; Residex

Dwelling price growth to date in this cycle has been much more muted elsewhere, particularly in regional areas.

Some inner suburban housing markets in Brisbane appear to be hotting up, but the Queensland capital city market very much has a two-speed feel to it. 

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At 11.30am this morning the ABS will release the latest Labour Force data for the month of April 2015.

After an apparently strong result in March the market expects too see only a moderate increase in total employment.