Residex anticipate downswing, as Sydney units hit record $695,000
Headlines over the past few weeks have used words such as tightening, clamping and crunching when talking about the housing market and its affiliate institutions, Residex analyst Eliza Owen has noted.
"While a bearish approach to property is expected as we enter a downswing in the market cycle, further context and data are needed for a more grounded perspective," she said.
Table 1 presents the statistics summary for April.
Table 1: April 2016 Summary
Source: Residex
Quarterly growth in the value of Sydney’s median house was a modest 0.03 percent, which is off the back of losses in the March quarter. The result is a stagnant median house value of just over $1,040,000, where it has been hovering around since January.
"On the other hand, units in the Sydney market increased a significant 1.26 percent over the April quarter, following losses in January," Eliza Owen said.
The median Sydney unit is now at a historic high of $695,000.
The Melbourne market experienced more significant easing in the April quarter, with the median house and median unit value dropping by approximately $5,000 and $3,000 respectively. As Melbourne tends to follow Sydney at a lag, there could be further short-term fluctuations in this market over the next few months, rather than a distinct downward trend.