Property price growth soars in Sydney and Melbourne

Sydney’s median house price reached $900,000 at the end of June after growing 17.8 per cent over the year, according to new statistics from CoreLogic RP Data.

That compared to a growth rate of 16.4 per cent in May.

Sydney’s median unit price rose 9.5 per cent to $650,000 after rising 8.8 per cent the month before.

Melbourne’s median house price hit $615,000, after growth increased from 9.8 per cent to 11.2 per cent.

The median unit price is now $480,000, although growth slipped from 2.9 per cent to 2.4 per cent.

CoreLogic RP Data head of research Tim Lawless said the February and May interest rate cuts have contributed to these accelerated capital gains, after price growth moderated between April 2014 and January 2015.

“With the RBA cutting the cash rate in February, there was an instant buyer reaction across the Sydney and Melbourne housing markets where auction clearance rates surged back to levels not seen since 2009,” Mr Lawless said.

“Capital gains once again accelerated and we are now seeing Sydney and Melbourne homes selling in record time: Sydney homes are selling in just 26 days and Melbourne homes in 32 days.”

Mr Lawless said strong economic conditions and migration rates have also driven price growth in Australia’s two biggest cities.

Meanwhile, CoreLogic RP Data figures show that Adelaide has replaced Brisbane as Australia’s number three market.

Adelaide’s median house price increased 4.7 per cent to $430,000, while its median unit price increased 2.0 per cent to $337,000.

Brisbane house prices climbed 3.7 per cent to $488,000, while unit prices climbed 0.7 per cent to $382,000.

Hobart was the only other capital to post increases in both sectors, with houses up 0.8 per cent to $348,000 and units up 1.2 per cent to $265,000.

Darwin’s median house price fell 4.8 per cent to $585,000 – however, its median unit price jumped 4.9 per cent to $464,000.

Canberra had the opposite experience, with house prices growing 3.0 per cent to $590,000 and unit prices declining 4.7 per cent to $420,000.

Perth went backwards in both sectors, with houses falling 0.6 per cent to $525,000 and units falling 4.0 per cent to $425,000.