2012 Sees Increases in Sydney House Prices
As 2012 drew to a close, Sydney’s median house price increased significantly, with December seeing a 6.1% rise. However, only small price gains were made in the mortgage belt of Western Sydney.
The most recent report by the Real Estate Institute of New South Wales (REINSW) showed an increase of 4.2% in the final quarter of the year, with the median house price at $594,000.
The report also suggested that the market in Sydney was quite fragmented as the inner city saw no growth in price. Its median house price stayed at $1.05 million.
Outer suburban houses – located more than 25 kilometres from the Sydney CBD -- represented 65% of the 40,000 sales that were made in 2012. House prices in these suburbs increased by 4.4% to reach a median price of $470,000.
The strongest sales activity throughout 2012 occurred in the growth corridor of Sydney’s outer west, in suburbs like Castle Hill and Blacktown. Although the area ultimately delivered inconsistent results for investors and home owners.
Tim McKibbin, CEO of the REINSW, said that the results published in the report indicated overall improvements and more confidence in the market. He expected 2013 to be a better year for real estate.