Sydney and Melbourne values continue to increase

Sydney and Melbourne values continue to increase

Posted on Monday, September 29 2014 at 1:01 PM

The Sydney and Melbourne markets have continued to shine in the month of August, according to new data from

The Sydney property boom is still under way, with
house prices rising by 1.52 per cent over the past month.

The Melbourne house market also rose by 2.31 per
cent in August, which is the highest monthly growth rate seen in this market since March,
2013. Growth in the unit market
was also positive in August, at one per cent.

However, the overall national growth
rate has slowed, with growth in the house market falling from 0.86 per cent in
July to 0.02 per cent in August. Growth in the unit market has also dropped
during the same time period, from 1.62 per cent to  -0.37 per cent.

The Brisbane and Perth house markets recorded the worst rates of growth in
August, with values dropping -1.70 per cent and -1.84 per cent respectively.

Consulting analyst for, John Edwards, says the Brisbane
housing market continues to defy the growth trend seen across other capital
city markets.

“Brisbane now offers an attractive affordable-lifestyle balance – and as
the Queensland Government repairs its balance sheet, job opportunities and
housing values will begin to increase,” he says.

“Melbourne has seen an unexpected increase in its August growth figures.
This is due to a predominately auction driven selling process that results in a
more volatile market. The quarterly trend report suggests that this number is
probably unsustainable, and I expect a more moderate growth rate to resume in

“The Sydney market does seem to be slowing, although not as quickly as we
expected. Taking into account the median household income, the affordability
measure is now at historic heights, with loan repayments taking about 54 per
cent of the after tax income.

“The current median house price is now only $147,500 away from breaching
the million dollar mark. At this rate, we expect to hit this median within a
five-year period.”



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