Sydney houses still a rising market: December 2016 HTW Property Clock

Sydney houses still a rising market: December 2016 HTW Property Clock
Sydney houses still a rising market: December 2016 HTW Property Clock

Houses in Sydney are in a rising market among those in Canberra, Adelaide, Bathurst and Tamworth, according to Herron Todd White's Property Clock for December. 

Sydney and Melbourne houses were at peak pricing in November.

In their latest report HTW state after a sustained period of strong growth, the final quarter of 2015 saw a softening residential market across many parts of the nation, with this trend expected to continue throughout Sydney in 2016.

"Despite those expectations, the market continued to see price growth throughout 2016, with double digit growth in a number of suburbs for both houses and units," HTW said.

"Auction clearance rates have recovered since the beginning of the year and are now consistently above 70 percent and 80 percent.

"Some areas such as the inner west and eastern suburbs have had clearance rates regularly above 90 percent.

"A major reason behind the increase in clearance rates and sale prices has been the reduced number of properties on the market and majority of properties going to auction rather than private treaty. The usual boom in the number of transactions taking place in spring has failed to live up to past experience.

"Agents have been unable to obtain the same amount of stock compared to 2015. This has caused congestion amongst competing buyers and agents are taking advantage of this. We have seen properties advertised with a price guide only to see prices jump further as they get closer to auction. Sometimes these properties are sold prior to auction for unjustifiable prices."

Sydney houses still a rising market: December 2016 HTW Property Clock

The Sutherland Shire suburbs such as Gymea, Kirrawee and Miranda have been strong performers in the housing market according to HTW with Gymea has having growth rates of 10.3 percent in 2016, Kirrawee 4.5 percent and Miranda 7.3 percent (pricefinder.com.au).

The report said while these growth figures are not huge compared to 2015, these suburbs have performed stronger than others.

"A trophy house built in 2012 at 18 June Place, Gymea fetched $2.185 million and a house built in 2015 at 24 Rutherford Avenue, BURRANEER sold for $3.3 million... these house sales are showing the strength of the market for quality properties.

"The suburbs which did not perform in 2016 are Engadine, Menai, Bangor and Alfords Point coming back around 2.2 percent (pricefinder.com. au).

"Suburbs such as Monterey and San Souci have seen houses under performing. Monterey house growth was 20.8 percent in 2015 compared to just 8.8 percent in 2016 and Sans Souci was 23.1 percent in 2015 compared to 9.1 percent in 2016. 

"On the eastern beaches, the suburb of North Bondi has been performing well with growth of 22.4 percent in 2016 and a median house price of $2.5 million compared to 2015 which was 13.1 percent growth and a median house price of $2.287 million.

"Lastly the popular city fringe suburb of Paddington has seen growth of 16 percent with a median house price of $2.03 million. The strong performance is an indication that the market has caught up from previous years as in 2015 the growth was 8.7 percent and median house price was $1.75 million and in 2014, growth was 3.8 percent and median house price was $1.61 million (pricefinder.com.au)."

 

Tags: 
Sydney Housing Market

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