Pete Wargent blogspot

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

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Thursday, 1 October 2015

Residex: Sydney house prices +21.7% y/y

Residex released its excellent property market update which showed Sydney house prices soaring by another $20,000 in August to be +7.9 per cent higher over the quarter to August and a massive +21.7 per cent higher over year.

Unit price growth in the harbour city was somewhat slower at +14.3 per cent over the year (that said, CoreLogic-RP Data's index, which was released today, showed that Sydney units were the better performing property type over the past quarter with +5.6 per cent growth, perhaps due to affordability constraints).

Sydney's annal house value growth rate has reached an extraodinarily high level.

Sydney house prices have by far and away outpaced the rest of the country through this cycle.

After a relatively dry run since 2007 Brisbane is now picking up with house prices now +6.8 per cent higher than one year ago.

Residex provided some interesting insights into long run dwelling prices, noting that sustained downturns have been rare, and for long term holders historically downturns have not mattered since prices have always increased (this echoes what I found with the long run London price data here).

Check out the in-depth Residex analysis here