Sydney market keeps firing

Sydney market keeps firing

Posted on Thursday, January 29 2015 at 9:24 AM

The New South Wales capital continued to be the nation’s outstanding market performer, according to the Domain Group.

The analyst’s House Price Report for the December quarter of last year shows the
nation’s housing price rose by 2.1 per cent.

Dr Andrew Wilson, senior economist at Domain,
says Sydney’s 4.1 per cent gain for housing and 2.9 per rise for units were the
standout numbers.

“This quarter’s strong national results are largely
due to the momentum of the Sydney market, which is still achieving consistently
strong growth.

“Thanks to its status as the strongest capital
city economy with high migration levels, a chronic shortage of housing and
heady levels of confidence from buyers and sellers, Sydney remains the dominant
force amongst the capital cities.”

Other capitals also saw value rises at the end
of 2014, with all but Darwin recording positive gains.

Brisbane, Perth, Canberra and Hobart all experienced
a rise of more than one per cent.

Melbourne’s 0.6 per cent and Adelaide’s 0.1 per
cent gains were less dramatic, but still in the right direction.

“Melbourne’s modest
results were not surprising given declining local auction clearance rates and
weakening ABS home loan data recorded over spring.”

Darwin’s six per cent fall in values
demonstrates a slowdown in the previously runaway market.

Wilson says to expect a further quieting in
markets, with rate cuts unlikely to influence buyers in 2015.

“Within an environment
of stagnant national economic growth, house price cycles are set to generally
flatten in most capital cities with the exception of Sydney,” he says.

“Further rate cuts,
should they occur, will likely have a minimal impact on housing affordability.”

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