Sydney unit value hits $500,000 for first time with 4.9% yield

The median value of a Sydney apartment reached $500,000 for the first time in June.

RP Data-Rismark records a 2.7% rise in the median Sydney unit value to exactly $500,000.

Sydney units provide investors with a gross return of 7.6% and a yield of 4.9%.

This equates to weekly rent of around $470 per week.

Despite this new milestone being reached, Sydney unit growth was outpaced by Sydney houses, which rose 6.3% year-on-year. 

The gap is narrower over the past six months with Sydney house values are up 4.8% while unit values have risen by a smaller 4.0% notes RP Data research director Tim Lawless.

"The results come as a bit of a surprise considering investors are one of the most active segments across the Sydney market and rental yields tend to be higher for units compared with houses. 

"Potentially one of the drivers of the detached housing market performance is the fact that this segment of the market saw a larger correction in values between late 2010 and mid 2012; house values were down 6.4% compared with a 3.6% fall across the unit market," Lawless says.

Weekly rents across five capital city markets for June

Source: Extrapolated from RP Data-Rismark yields and median values for June 2013