Sydney apartments surge: Pete Wargent

The Detailed Labour Force figures reported that Greater Sydney's unemployment rate fell to just 4.8 percent in April. 

 

When tracked in rolling annual terms to smooth out the monthly volatility, Sydney's unemployment rate has been cascading lower for 26 beautiful months now.

 

The unemployment rate in Melbourne has also been trending lower for 17 months, although the unemployment rate in Brisbane has stopped falling for the time being after an impressive run. 

 

Across most of the capital cities ex-Sydney unemployment rates seem to be converging to around a 6 per cent level, neither great nor amazingly bad.

Adelaide has been the outlier on this measure.

Over the past two years New South Wales and Victoria (read: Melbourne) have created more than 85 per cent of net new employment (+333,000 jobs), although Brisbane has had a more than decent past 12 months (+34,900 jobs). 

CoreLogic is reporting that Sydney's median home value has increased by 6.9 percent over the last quarter, the figure perhaps skewed higher by the running of some new parameters.

In its monthly market update Residex reported that Sydney's median house price increased by 0.4 percent month of April to $1,046,000.  

This is 10.6 per cent higher than one year ago, although the median looks to be struggling a bit to break new highs now.

Despite various gloomy predictions and talk of oversupply, Sydney unit prices increased by 1.3 per cent in the harbour city over the thee months to April to be 10.5 per cent higher over the year.

The median Sydney unit price is now at a new record high for unit prices anywhere in Australia of $695,000.

Dichotomy

 

How is this occurring despite lower stock turnover and somewhat lower mortgage finance in New South Wales?

 

Without generalizing too much, the inner suburbs (where most units are located) are seeing feisty activity, but many of the outer or secondary suburbs are struggling. 

 

You can witness this trend in auction clearance rates, with the eastern suburbs, lower north shore, city & south, and northern beaches sub-regions continued star performers. 

 

As you move away from the prized inner suburbs the market begins to look a little sketchier, while some areas are in all likelihood experienced declining prices.

Remember that the reported median price is a midpoint of the frequency distribution, but it doesn't necessarily reflect what is happening across all markets.

Elsewhere, Residex reported that over the year to April there have been solid increases in house prices in Melbourne (10.8 per cent) and Brisbane (5.3 per cent). 

 

Residex noted that value declines in resources regions, although ongoing, appear to be easing.