Inner City Property Still Showing Record Growth
It should come as no surprise that the property investment market in Sydney and especially inner city locations is still recording record growth as more and more people seek out the high value, high return locations for investment. According to the Domain Group’s House Price Report for December 2014, growth for houses and apartments in inner Sydney revived over the Spring and was experiencing exceptional growth by the end of last year. Dr Andrew Wilson, the Senior Economist with the Domain Group suggests that the Sydney market is unlikely to see a downturn in 2015, while other capital cities may see a slight flattening off of prices after the record highs of last year.
Looking at results from the December quarter, the report found that:
- In Sydney, house prices rose by over 4%, following a 3.5% rise recorded in the previous quarter. The median house price in Sydney is now $873,786. Inner city apartments also experienced strong growth at 2.9% for the quarter, up from a rise of 1.4% in the previous quarter. The median apartment price for Sydney is now $597,668.
- In Melbourne, house prices rose by a more modest 0.6%, with a median price now of $610,470. Apartment prices grew at 2.6% for the quarter, and the median price for an inner city unit now at $431,419.
- In Brisbane, house prices increased by 1.5% over the December quarter, with the median house price now recorded as $489,681. Apartment prices fell by 4.2%, with the median price now at $357,315.
- Canberra’s property market experienced a turbulent year, with house prices increasing in the December quarter by 1.4% after a fall of 1.2% in the previous quarter. Prices for apartments were slightly more stable and recorded a rise of 1.1 during the quarter, although they were down 0.9% for the year.
Other results included a 0.3% increase in Adelaide house prices during the quarter, with the median of $466,930, and an overall healthy 4.1% rise recorded over the year. Perth also recorded a steady rate of growth during the quarter – coming in at 1% for houses and 0.6% for apartments.
In his analysis Dr Wilson believes that while Sydney will again be a standout performer in terms of growth for 2015 (for example, the median house growth is expected to exceed $900,000 sometime during the year) the performances between the other capital cities will be similar. With the recent rate cut to a record low of 2.25%, and with most economists suggesting that the cash rate may be cut further during the next few months, the outlook for anyone interested in property investment in Sydney or the other capital cities should be positive. Choosing the “right time” to start investing or to think about adding to your property portfolio should be an easier task this year, as long as you do your homework and get assistance from property investment experts such as Ironfish whenever you need it.