You’d be pretty happy to be a homeowner in Sydney and Melbourne right now, particularly if you bought around the time the Reserve Bank of Australia began slashing interest rates in response to the global financial crisis back in late 2008.
As the chart below from CoreLogic reveals, house prices in Australia’s largest cities have far outperformed those in Australia’s other capitals since the start of 2009.
A mind-boggling 110.9% nominal increase in Sydney prices, with Melbourne not far behind at 95.3%.
Canberra, at 39.1% comes in a distant third place.
The 69.8% increase in combined capital city prices reflects the sheer size of Sydney and Melbourne’s housing markets, along with the magnitude of the price increases recorded over the past eight-and-a-half years.
Prices in Australia’s other capitals have, in real terms at least, fallen over the same period with inflation increasing by around 20%, according to the ABS.