Sydney house prices have shot up in the past few months, but long-term growth in the market still lags significantly behind other major Australian cities, according to a new report by the Housing Industry Association.
HIA reports that median house prices in Sydney have grown 13% in the past 12 months, double the average annual growth rate for the past decade.
Since June 2002, house prices have risen by a total of 31% in Sydney, compared to 79% in Brisbane, 80% in Melbourne and 143% in Perth, HIA reports.
“In this context, the recent acceleration of price growth in Sydney represents some redress given the ‘lost’ growth of the past ten years,” the association wrote.
From HIA’s report:
HIA said steady rental yields and mortgage rates suggested that Sydney’s rising house prices were “strongly supported by fundamentals in the market”, rather than symptoms of a housing price bubble as recently suggested in the media.
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