AUSTRALIA’S hottest housing market has seen prices climb faster than the national average over the past three years.
The price index for detached houses in Melbourne rose 6.4 per cent in the December quarter to $1.943 million, with detached houses valued at $1 million and $1 billion in value.
The price index of townhouses and apartment buildings rose 6 per cent to $847,000, while apartments and townhouses climbed 5.7 per cent.
“We’ve seen the highest price growth since 2009 and are in the top end of the market,” said Mike Leung, the chief economist at UBS.
“Prices are going to keep rising, and we expect that’s going to continue.”
While some of the fastest price increases have occurred in inner Melbourne, including the city’s west, some of Melbourne’s hottest housing markets are in Sydney and Brisbane.
The Sydney market is the hottest, rising 9.1 per cent, with the average price of a home there up 30 per cent since the end of last year.
Prices for detached properties in the Sydney market are up 25.1% year-on-year to $3.9 million, while townhouses are up 21.4% to $5.1 million.
“The growth is coming from the outer suburbs, and there are lots of people buying townhouses,” Mr Leung said.
“It’s a good sign for the economy and a sign for prices going up in the rest of the country.”
The biggest concern is affordability.
If prices are going up so fast it means you have to sell at some point, which means the market is going to be oversupplied.
“The latest figures also show the median sale price for homes in Sydney rose 4.9 per cent year-to-date to $922,000.
The median sale prices for detached homes were up 8.4 percent year-over-year in Melbourne, to $719,000 and the median price of town houses was up 10.2 per centyear-on-(year-to)-date to nearly $2 million.”
Prices have come down in the inner city, but not to the point where you can’t sell your house for more than $700,000,” Mr Lee said.
In Sydney, the median home price has risen 15.9 percent year on-year, while the median property value has risen 14.7 percent to $6.5 million.
In Brisbane, prices for houses and townhouse units have climbed more than 50 per cent over the same period to $2.8 million.
The latest housing news on ABC Local Radio, and on our website, is in English.
Listen in to hear more stories and podcasts.