The housing boom may be coming to an end with new RP Data figures showing modest growth around the nation except for perennial leader Sydney.
Australian property prices grew 1.4 per cent since February, and it would have been lower if it wasn’t for the 3 per cent rise recorded by Sydney.
Melbourne recorded a slight rise of 0.6 per cent and it was a similar story around the nation.
Over the last 12 months Sydney has again led the way comfortably with a 12.9 per cent increase with Melbourne the next best city but a long way behind at 5.6 per cent.
Head of research at CoreLogic RP Data Tim Lawless says the figures make it tricky for the RBA as the February rate cut stimulated price growth in Sydney and it would most likely continue this trend if they cut rates again.
Mr Lawless told Mortgage Professional Australia that investors could be left with an expensive but low-yielding asset once Sydney’s housing market loses its momentum.
“Although household income growth is minimal, Sydney’s housing market continues to reach new record highs, with values increasing over the past 35 months,” he said.
“It does pose the question of how much longer the growth can persist.”