The Sydney housing market managed to record its first median rise in house prices during the June quarter, mainly due to the optimism in the market after the federal election and the recent reduction in housing prices. cash rate.
Figures from the Australian Bureau of Statistics (ABS) show that the median price of real estate in Sydney has increased from $ 5,000 to $ 870,000 during the June quarter.
However, it appeared that a sustained recovery in the capital city of New South Wales was still not contemplated given the decline in Sydney's residential housing index. According to ABS, the index declined for a sixth consecutive quarter in June.
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The national value of isolated dwellings declined 0.6%, reflecting a more moderate decline from the 3.1% drop recorded in the previous quarter. Lower prices for apartments, townhouses and semi-detached dwellings also fell from 3% to 0.8%.
Some economists are tipping the recovery of the housing market next year, with prices rising by up to 10%. According to UBS, the strong loan growth in July, as well as the steady performance of the auction markets, seem to indicate that a recovery is underway.
Tim Lawless, research director at CoreLogic, said that the significant rise in values ​​recorded over the past month was in line with the steady performance of the auction market.
"It is likely that the demand and confidence of buyers react to the positive effect of a stable federal government, as well as to lower interest rates, to tax cuts and subtle easing of credit policy, "he said.
In addition, the possibility of further rate reductions strengthens the outlook for price recovery next year.
"If the sharp rise in values ​​continues over the next few months, we would not be surprised to see a new round of macroprudential policies introduced in order to control the level of debt and encourage spending in other areas. Other sectors of the economy, "said Lawless
Top suburbs:
Nundah
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Glendenning
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Geelong West
,
Murdoch
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Scarborough
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