If you think that house prices in Sydney and Melbourne have risen rapidly in recent years, you’d be right.
As shown in the chart below, supplied by CoreLogic RP Data, prices in Australia’s largest capitals have skyrocketed over the past seven years, rising by 80.2% and 67.8% respectively since January 2009.
As a result of Sydney and Melbourne’s weightings in the group’s home value index, the median house price nationally has grown by 51.7% to $575,000.
Over the same period, headline consumer price inflation rose by 17.9% according to the ABS, meaning prices in some cities have actually fallen in real terms over the past seven years.
After seasonal adjustments, the ABS’ wage price index has risen 23.1% over the same time period.