After the bumper year that Sydney property saw in 2013, not many predicted this level of growth to continue through 2014. With investment skyrocketing and the threat of macro-prudential controls on the horizon, it was expected that price growth would ease up by many.
A Domain Group news item from January 2014 noted that Louis Christopher of SQM Research bucked the trend, and predicted that Sydney would see growth of up to 20 per cent over last year.
And as it turns out, he was more right than most.
The Domain Group Housing Report for the December quarter of 2014 showed that across that year, house prices rose by 14.1 per cent, with a stratified median price of $873,786. The next highest growth was Brisbane, at 6.1 per cent – below the national average of 7.1 per cent, showing just how much weight the Harbour City carries for the Australian real estate market.
In a Sydney Morning Herald article from 29 January, senior economist for Domain Group Andrew Wilson broke down these increases further by region, which will be of interest for anyone interested in buying a property in the eastern suburbs.
The City and East areas of Sydney saw 7.8 per cent growth in median prices over 2014, which was at the lower end of Sydney-wide growth. Rather than being categorised as a poor result, this is more an indication of the brute strength of the market. For example, the Inner West saw 18.1 per cent growth in median prices.
While growth was slower in the City and East, the median price is still at a premium of $1.65 million according to data from Wilson in the SMH piece, showcasing the luxury lifestyle on offer.
Engaging the team at Ray White Double Bay is an excellent way of finding properties in this area that can meet your budget and also continue to produce capital gains.