Sydney median prices rose in 2016: Pete Wargent

Sydney median prices rose in 2016: Pete Wargent
Pete WargentDecember 17, 2020

I'm not yet clear whether there has been a revision to the Residex house price index methodology.

But, for what it's worth, here are the latest median prices, which have now been disclosed.

The Sydney median house price hit a new high of $1,117,500 in December 2016.

The Sydney median unit price increased to a new high of $725,500.

Click to enlarge

Sydney median prices rose in 2016: Pete Wargent


The median unit price rose by 7.4 percent in 2016, while the median house price increased by 7.1 percent.

One of the metrics I've been tracking has been the change in Sydney unit prices when priced in Chinese yuan terms. 
 
As you can see in the chart below, Sydney unit prices have increased by only 15 percent since this cycle began for offshore Chinese buyers. 

Click to enlarge

Sydney median prices rose in 2016: Pete Wargent

 

Rising prices have therefore not been much of a deterrent for Chinese buyers.
 
However, regulatory measures have been.
 
Upon discussion this week with developers in Brisbane, it's clear that activity from China has, if not halted, slowed up dramatically since last year. 
 
Rates on hold
 
In other news, there were few surprises in the Reserve Bank's Monetary Policy Decision, whereby the official cash rate was left in hold at 1.50 per cent.
 
The RBA expects reasonable growth in the economy in the December quarter, and expects growth to remain at around 3 per cent over the next couple of years. 
 
The real cash rate now sits just below zero.
 
Sydney median prices rose in 2016: Pete Wargent
 
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger

Pete Wargent

Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.

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