The significant price increases have been particularly substantial for detached housing. Sydney’s median house price is now $1,112,671,up about $50,000 since February,with Melbourne house values up $20,000 to $859,097. In the first three months of the year,Sydney’s detached house prices increased 8.2 per cent.
ANZ recentlypredicted property prices could surge as much as 19 per cent in Sydney and 16 per cent in Melbourne before slowing in 2022. The bank’s economists sayregulators could intervene to curb lending to stop the market from overheating,though so far the Australian Prudential Regulation Authority has not been concerned about lending standards.
CoreLogic research director Tim Lawless said the last time prices surged at this level in Sydney was in June and July 2015.
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“Following this brief surge,the pace of growth rapidly slowed as limits on investor lending kicked in to slow the market.”
Regional homes have been leading the price boom,leading to speculation the pandemic has prompted a long-term exodus from the capitals in favour of lower-density country living,but major cities are now starting to lead the increases. Last month,every capital city grew faster than its regional counterparts except for Melbourne,which was modestly outpaced by country Victoria.