The Harbour City’s house prices are continuing to sizzle, just like their weather will in the coming weeks.
Australian Bureau of Statistics figures released this week show a 2.7 per cent rise in house prices in Sydney for the September quarter.
That compares to around 1 percent for the other Eastern State capitals. Perth prices actually fell 0.1 per cent over that time.
If you have a look at the last year to September, Sydney’s market really does stand out, with prices increasing 14.6 per cent, while Melbourne rose 6.9 per cent.
Sydney’s market showed strength across all segments, and in Melbourne established houses priced between $550,000 and $1 million went up the most.
ANZ senior property analyst David Cannington told The Age that Sydney was leading the way in the property market.
“There’s elevated auction clearance rates as well,” he said.
“A lot of this is being driven by investor sentiment.”
Mr Cannington said house prices would start to cool and denied there was a housing bubble in the State.
“There was a long period when house prices in Sydney didn’t do a lot,” he said. “This is a relatively short period of strong price growth.
“Sydney hasn’t seen the price growth that a lot of the other capital cities have seen over the last 10 years. Melbourne has sustained solid price growth for a long period of time.
“There is an element of catch-up in the Sydney market.”
“We think that the momentum in house prices will start to wane over the next six months,” he said. “As the Reserve Bank increases cash rates in 2015, that will also weigh on price growth.”