Sydney house prices growth last year has renewed market optimism, prompting forecasts of continued price growth in 2015.
According to new research data by Domain Group, Sydney house prices rose a “surprising” 14% in 2014, following an increase of more than 15% the year before.
The research revealed the median house price for Sydney is now $873,786. Apartment prices rose 10.4% in 2014 and 2.9% over the December quarter to $597,668.
Data released by SQM Research in November revealed Sydney’s median asking price for freestanding houses passed the $1 million mark for the first time.
Sydney’s upper north shore and north-west regions witnessed price growth of up to 21.8%. The inner west experienced robust growth of 18%, and while the east and inner city price growth rose just 7.8%.
The sale of a five-bedroom house on Sydney’s lower north shore exceeded all expectations last September, eclipsing the top sale price for the suburb.
Domain Group senior economist Dr Andrew Wilson said strong results in the December quarter put Sydney’s property market in “hyperdrive while the rest of the country is in second gear”.
Wilson forecasts price growth of between 7% and 10% for 2015, “and closer to 10%”, he added.
Sale inquiry levels also jumped, up 20% on last January.
The talk of interest rates going down even further, may have led to the increased number of inquiries.
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