House prices soar across Sydney, led by outer south-west surge
Sydney property prices have hit a new record high, with house values rising to $1.72 million and units to a median of $835,000 over the 12 months to June.
According to Domain, these peaks represent respective annual growth of 4.20% ($68,808) and 3.25% ($25,840).
Domain chief of research and economics Nicola Powell said property prices had been driven up by this year’s two cash rate cuts – and the resultant increase in borrowing capacity. And because Sydney is such a high-price housing market, the rate reductions move through it at a “much quicker pace” than other capital cities.
“Increased borrowing capacity is coming out as faster rates of price growth, and with an expected rate cut in August that’s going to provide a firm platform for the spring selling season.”
House price growth was strongest in the city’s south-west region, where values skyrocketed 10% annually to $1.21 million. For units, Sydney’s outer south-west topped the rankings; its median is now $570,000 following a year-on-year climb of 6.7%.
Dr Powell said house prices were soaring in western locations because houses there were more affordable than in other regions.
