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

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Friday, 29 January 2016

Residex market update

December market update

Residex released its December 2015 property market report here

The best performing property type in 2015 was houses in Sydney, which increased by +1.7 per cent in the fourth quarter to a median price of $1,065,500, for a huge increase of +18.4 per cent over the year.

Sydney unit prices increased by +1.7 per cent in the fourth quarter to be up by +13.5 per cent over the year.

Residex reported that over the two years of the current market cycle, the median house price in Sydney increased by +$375,000. 

Interestingly, Melbourne house prices recorded growth of +13 per cent in 2015, which was considerably stronger than many analysts expected. 

Brisbane houses (+3.4 per cent) and unit prices (+3.8 per cent) recorded solid growth, though Brisbane is a clear multi-speed market at the present time, with some examples of a disconnect between asking prices and what buyers are prepared to pay.

Mirvac and Stockland have reported more Sydney buyers are looking at apartments in Brisbane, while other developers note that up to 40 per cent of sales are going to Sydney buyers.

Perth house prices increased by +2.3 per cent in December, but were flat over 2015, while Perth unit prices were down by -4 per cent over the year. 

Capital City Summary

Despite these solid results, there can be little price that house prices have declined in western and outer-western Sydney towards the end of the year.

It's at this stage of the cycle where the wheat will be separated from the chaff, and those who paid thousands over reserve in outer and western Sydney suburbs could feel some pain in 2016.

On Monday data provider CoreLogic-RP Data will report that Sydney home values increased by +0.5 per cent in January.