Sydney house price growth breaks clear of unit price growth in latest RP Data
There was a very strong Sydney price growth in June, according to the latest RP Data release.
Year on year the growth was 5.6% for all Sydney dwellings.
Houses performed much stronger than units over the past 12 months.
Houses are up 6.3% to a $662,500 median.
Units are up just 2.4% to a $500,000 median, but that’s a record.
It puts the typical Sydney house rental at $535 a week.
The typical Sydney unit rental at $470 a week.
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.
The big question is how sustainable is the recent price growth.
BIS Shrapnel had something to say on this today noting the key regional NSW cities of Newcastle and Wollongong were expected to come close to matching Sydney's median house price growth over the next three years.
BIS Shrapnel forecasts Sydney house prices to rise 19% over the next three years to June 2016, leading an uneven recovery in the housing market.
The forecasts for Newcastle and Wollongong are for gains of 18% and 17% respectively between now and June 2016, and more concentrated in the latter two years.
"Residential property prices in Newcastle and Wollongong usually benefit when Sydney experiences strong price growth and migration into these regional centres increases, says BIS Shrapnel senior manager Angie Zigomanis.
"With affordability in Sydney relatively attractive in a long term sense, an acceleration in prices in these regions is expected to be a little behind that of Sydney, picking up over 2014/15 and 2015/16 as a combination of price rises in Sydney and an expected tightening in interest rate policy begin to reduce affordability in the capital," he says.
