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    Wednesday, October 15, 2014
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    Wednesday, April 30, 2014
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  • Property prices on the rise with Sydney’s property boom | Real Estate Blog – Niche Portfolio
    Monday, March 17, 2014
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  • Top Tips for Buying a Rental Property | Real Estate Blog – Niche Portfolio
    Friday, February 28, 2014
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  • Sydney property and property investment news | Real Estate Blog – Niche Portfolio
    Monday, January 20, 2014
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Sydney Property Prices Growing Rapidly | Real Estate Blog – Niche Portfolio

Monday, August 26, 2013

Recent statistics are heralding good news for property investors, with reports showing that Sydney property prices are growing at double the rate of those in Brisbane and Melbourne as well as double the recent rate of inflation.

 

With a rise of more than 6% over the past year, Sydney regions have reached their highest median price ever according to the Australian Property Monitors. The biggest improvement on the previous peak in 2011 was shown in the outer Sydney regions as well as Canterbury-Bankstown, which boasts median prices of more than 10% higher than the 2011 peak. Other big achievers included the inner west, which recorded a 9.5% increase and the upper north shore, which increased by 8%.

 

Last month saw personal bests in housing prices reached in suburbs such as Fairfield, where a new seven bedroom house became the first Fairfield property to sell for over $1million. Additionally, in Mt Druitt, a property sold for $780,000.

 

Many homebuyers are struggling with this rapid growth in property prices, with the median house price last December being $40,000 higher than the $600,000 it was in June, 2012, according to the Australian Bureau of Statistics. In response, the real estate industry has demanded the reinstatement of the first homebuyer’s grant. However, chief executive of the Australian Council of Social Service, Cassandra Goldie has claimed that the grant falsely inflated the market and made owning a home more unaffordable in the long-term.

 

The topic of whether the housing prices will continue to rise as they have or whether the growth will soon plateau divides experts.

 

JP Morgan economist Tom Kennedy believes that “the housing sector is going to go quite well in the near term because of the low interest rates and because investors are looking for a place to put their cash and the logical area for that is the housing market.” CommSec chief economist, Craig James, agrees saying, “over the next twelve to eighteen months we can expect to see housing leading the way and driving the economy, taking the baton from the mining sector”.

 

On the other hand, Managing Director of SQM Research, Louis Christopher has pointed out that these significant results could soon come to an end, saying, “I still think it’ll be strong for the next six months but the more it grows from here, the bigger the chance that if we get an interest rate rise that this area will under perform for a period of time.”

 

Despite the uncertainty over what fluctuations the housing market will see over the next year, at the very least this will certainly be one to keep an eye on.