Domain Sydney Property Market Report - Nov 2013

The Sydney housing market has consolidated its position over the September quarter as the standout capital city housing market performer. The Sydney median house price rose sharply over September by 4.2 percent to a new record high of $722,718.


The median unit price in Sydney was also up strongly, rising by 3.3 percent to a new record of $515,035.


This was clearly the best performance of all the capitals.  Sydney house prices have now increased by 11.7 percent over the past year with unit prices

also up sharply by 10.2 percent – again, the best performance of all the capitals.


Sydney’s spring market continues to strengthen with weekend auction clearance rates tracking at record levels. Sydney reported the highest number of monthly auction sales on record over October from high listing numbers. This record will almost certainly be eclipsed over November as sellers rush into the market to take advantage of the strongest-ever competition for auction properties in Sydney’s history.


Investor activity remains strong in Sydney with the latest ABS home loan data reporting that the proportion of investor finance approved has increased to near record levels at 53.2 percent of total housing loans, excluding refinancing.

 


Signs remain however of a weakening local economy with the September

unemployment rate remaining at 5.7 percent, a full percent higher than the 4.7 percent recorded at the same time last year.


Although the Sydney housing market continues to record strong prices growth and buyer activity, market sector performance remains mixed, with the prestige market still relatively subdued. First home buyer activity also remains at historically low levels.


The current trend of prices growth is set to be maintained over the remainder of 2013 as buyers and sellers continue to take advantage of the current strong market conditions.