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October Sydney Property Report

October Sydney Property Report

Sydney kept up it’s strong performance in September but it was a slower month around the country, possibly due to the finals series for the major sporting codes, AFL and NRL.

This is reflected in that only Adelaide (0.9%), Sydney (0.8%) and Brisbane (0.7%) recorded an increase in dwelling values for the month. Sydney had the greatest growth for the quarter rising by 4.1%. Perth (-0.6%) and Hobart (-1.0%) were the only cities to not have positive growth for the the past three months.

Median values across the capital cities sit at $559,700 for houses and $470,000 for units. Sydney continues to be the most expensive city to live in with values of $750,000 and $575,000. In fact no other city has median home values greater than $600,000 or unit prices over $500,000. Keep in mind that being the most populated city in Australia you can imagine the influence it has over the combined capitals median.

Over the 2013/14 financial year, the median selling price of land increased by 6.0%  to $247,000 across the combined capital cities and by 0.6% to $156,000 across regional markets. As at June 2014, the median vacant land size within the capital cities was 475sqm compared to 801sqm across the combined regional markets. This equates to the typical cost of vacant land being $530/sqm across the combined capital cities and $180/sqm across the regional markets.

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Nationally, 9.0% of all homes that resold over the second quarter of 2014 recorded a gross loss compared with their original purchase price. The figure was down from 9.7% at the end of the first quarter of 2014 and much lower than the 11.5% recorded over the June 2013 quarter. In contrast, 91% of all re-sales over the June quarter of 2014 transacted at a gross profit, with 30.5% of all re-sales at least doubling their money compared with their original purchase price. The average gross loss per loss making transaction was $63,097 while the average gross profit per profit making transaction was $225,830.

National Pain and Gain

In comparison, only 2.7% of homes re-sold over the June 2014 quarter in Sydney sold for less than their previous purchase price, down from 5.8% 12 months ago. All regions had less than 8% of all re-sales at a loss over the quarter with the Central Coast regions of Wyong (7.8%) and Gosford (6.7%) having the highest proportion of loss-making re-sales.

Sydney Pain & Gain

Sydney Pain/Gain results for house and unit re-sales over the June quarter 2014

With the footy over and summer approaching it will be interesting to see if Sydney’s property prices will continue to rise.

Source: RP Data

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