Lower interest rates and a sturdy local economy push Sydney’s median house price to $1,068,303, while Melbourne prices attain $773,669.
Median house prices in Sydney and Melbourne have hit all-time highs and are expected to keep rising for the remaining year, new property figures show.
Domain chief economist Andrew Wilson believed lower interest rates and a strong local economy had fuelled house price growth in Sydney, while unit prices also sustained to rise regardless of new construction.
“A relative shortage of listings and amplified interest from investors will continue to drive price growth in these capitals for the remainder of 2016.”
This has seen a number of property owners make hundreds of thousands of dollars by flipping properties purchased in the past few years.
It has also pushed home ownership further out of reach of first-time buyers. And experts say this is likely to get even tougher with more price growth on the horizon.Despite efforts to cool the property market, Sydney house prices have run away yet again, growing at their strongest rate in over a year.
“A lot of the price growth is due to the local Asian market, where there are still buyers willing to pay top price … there’s also not a lot of stock,” said Mr. Levitan.
He pointed to a boost in supply and a tightening in the guidelines for lenders as what will see property prices grow at lower levels than those seen in 2014 and 2015.
New unconfined on Monday need lenders to ensure borrowers are able to afford repayments on a 7 percent interest rate when assessing whether they’re eligible for a loan. This means somebody buying a median priced house would need to be able to pay $6040 a month on a 25-year loan. Assuming they had a 20 per cent deposit.