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Sydney house price growth nears 20%

Sydney prices continue to rise at extraordinary rates, while Darwin and Hobart are also showing strong signs of growth.

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Sydney’s median house price jumped 18.8 per cent between the first quarter of 2014 and the first quarter of 2015, according to the Real Estate Institute of Australia and Bendigo Bank.

That was based on an increase from $783,000 to $930,000.

The median house price for houses in all eight capital cities climbed 8.6 per cent, from $607,000 to $659,000.

Australia’s capitals have also experienced strong price growth for units and other dwellings, with the median rising 7.2 per cent over the year from $483,000 to $518,000.

In quarterly terms, house prices increased in all capitals except for Brisbane and Perth. Darwin led the way with 6.8 per cent growth.

Quarterly unit prices increased in all capitals except Adelaide, Perth and Canberra. Hobart was the stand-out with 5.7 per cent growth.

REIA president Neville Sanders forecast that property prices would continue growing in 2015, thanks partly to low interest rates.

However, changes to rules around foreign investment in Australian residential real estate may change the dynamic on the market, Mr Sanders said.

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