Pete Wargent blogspot

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

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Thursday, 29 January 2015

"Sydney back in boom mode for 2015"

Sydney growth accelerates

Unsurprisingly given low borrowing rates which are heading lower, Sydney's housing market  is set for another bumper year in 2015.

The latest Domain Group figures revealed that Sydney house prices accelerated in Q4 2014, recording 4.1 percent growth to be 14.1 percent higher over the year.

This was the strongest quarter of 2014 according to Dr. Andrew Wilson of the Domain Group.

"As this comes on the back of more than 15 per cent a year earlier, Domain Group senior economist Dr Andrew Wilson said the figures confirmed the Sydney property market is in "hyperdrive while the rest of the country is in second gear". 

Dr Wilson said most of the growth was in the December quarter. 

"The Sydney boom is back...the median house price increased 4.1 per cent – that's the strongest increase of any of the quarters of the year."

Dr Wilson is forecasting price growth of between 7 and 10 per cent for 2015. 
"And closer to 10 per cent," he said.
The median house price for Sydney is now $873,786. 
Apartment prices jumped 10.4 per cent over the year and 2.9 per cent over the quarter to $597,668.
Some regions had extraordinary house price growth last year, with the upper north shore and north-west shooting up 21.8 per cent."
Although median prices don't always paint a full picture our favoured sectors of the market generally performed very strongly in 2014 including the upper north shore (+21.8 percent), the inner west (+18 percent), Canterbury Bankstown (+15.8 percent) and the lower north shore (+13.1 percent).
Concludes the article:
"You would have thought it would have slowed down, but it just hasn't.
"And because of this talk of interest rates going down even further, that's led to even more people inquiring."
Dr Wilson said across Sydney, most of the house price growth was in the $1 million to $2 million price range, although prestige prices had grown about 10 per cent over the year."
The weakest performing markets for median house prices in Q4 2014 were Adelaide (+0.3 percent), and seasonally volatile Darwin (-6.0 percent), where median house prices have tumbled by 6.8 percent over the past year.
Other markets are generally moving up but less significantly, with national median house price growth up by 2.1 percent in Q4 2014, a figure skewed by the large gains in Sydney.