Australian capital city homes are almost 10% more expensive this year, with homebuyers paying a median of $616,600 in Sydney, Melbourne, Brisbane and the Gold Coast, Adelaide and Perth as of 31 December.
New statistics from RP Data today show that Sydney property prices gained the most throughout 2013, dragging up the national average with house and unit prices up 15.19% and 11.64% respectively.
In a note to clients this morning, ANZ researchers said prices would continue to rise on low interest rates, pent-up buyer demand and population growth.
Although growth in property prices is likely to by more than four times inflation (2.3%, according to forecasts), ANZ head of property research Paul Braddick and economist Dylan Eades argued against speculation of a bubble.
“Despite speculation that strong price gains represent the early stages of a house price bubble, gains are largely explained by improved affordability, the release of pent-up sales and some ‘catch up’ following earlier price falls,” they explained, highlighting a significant fall in demand from about 2010.
From ANZ’s report:
ANZ’s position is in line with that of AMP chief economist Shane Oliver, who noted earlier this month that property had returned just 5.3% per year in the 10 years to 2013, compared to 11.8% per year in the 10 years to September 2003.
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