TED TABET WED 26 JAN 22
Source: Domain
Sydney’s house prices are now double that of units, growing four times faster during the past year, new analysis shows. While the city’s unit prices lifted by 8.3 per cent year-on-year to hit a new record high of $802,255, the figure is just half the median of $1.6 million now needed to secure a Sydney house.
“This divergence has created a record price gap [and] the rapid escalation in price is proving a significant financial barrier to entry for buyers and upgraders against a backdrop of low wage growth,” Domain chief of research Nicola Powell said.
“Because of this, housing affordability will continue to weigh on demand throughout 2022.”
Powell said all capitals posted healthy yearly gains as a result of ultra-low interest rates, government stimulus, cash savings from cancelled overseas holidays or entertainment, and demand for bigger homes to spend more time in.
Brisbane house prices climbed 25.7 per cent, or $163,000, during the year; Melbourne rose by $172,000, a gain of 18.6 per cent; and Adelaide prices increased by $158,000, a 27.5 per cent jump on the same period. Perth by $43,000 or 7.5 per cent.
The smaller and cheaper capital cities have now powered ahead, driven by the tailwinds of affordability and demographic shifts.
By contrast, Sydney added just 6 per cent and Melbourne gained 5.8 per cent, while Brisbane by 10.7 per cent. Perth, where borders remained closed, lifted by 1.8 per cent for the same period.
“Demand continues to outstrip supply across a majority of the cities, however, rapid price growth and affordability issues are likely to shift demand in 2022,” Powell said.
“Price growth has slowed from earlier in 2021 but it is higher than last quarter.”
Nationally, house prices experienced a rate of growth at 6.5 per cent across the recent quarter, with median house prices topping $1 million to set a new record. National median unit prices also reached a new high with quarterly price growth at 1.9 per cent.
“As we went through the lockdowns and disruptions last year people really focused on the ‘family home’ and reimagined what they really wanted and needed from property to ensure it had a lifestyle focus,” The Urban Developer.
“While trends such as slower unit growth and a push for the regions is expected to continue, the bulk of it has not passed, and we are moving into an environment of reopening which could mean two steps forward and one step back for those in the market needing to reallocate some of their spending back to services.
Tim Lawless, Corelogic’s national research director, said the only broad regions avoiding a slowdown in the pace of growth in housing values were Brisbane, Adelaide and regional Queensland.
“These markets are benefitting from a healthier level of affordability compared with the largest capitals along with a positive demographic trend and consistently low advertised stock levels,” Lawless said.
https://www.theurbandeveloper.com/articles/quarterly-house-prices-apartment-price-gap