It’s almost defying logic, amid an inflation and interest rate squeeze the housing market is gathering speed, with Sydney prices on a steep rise.
Sydney Housing Prices Surge Amid Cost of Living Crisis
Sydney, a city already known for its high cost of living, is witnessing a steep rise in housing prices that seems to defy the logic of an ongoing inflation and interest rate squeeze.
According to recent data, house values in Sydney have increased by a staggering 507% over three decades, with the current median price hovering around $1.34 million. This surge can be attributed to several factors, including population growth, limited supply, and a strong demand for properties.
The city is leading the national rebound in house prices, with some suburbs outpacing others in terms of growth. Australian housing values have risen by an average of 1.1% in June, marking the fourth consecutive month of increase across the country’s capital cities.
Analysts predict that Sydney house prices could rise by as much as 9% by June next year. The median house price in Sydney has rallied in 2023, growing by an impressive 2.0% in May to over $1.3 million.
Property consultant CoreLogic’s figures reveal that national home prices were up 1.1% in June from the previous month, after hitting a low in February8. In Sydney, house prices have rocketed upwards by 4.5% since bottoming out in November last year.
Home prices rose 1.1% on average across the nation last month, with Sydney leading the increase with a 1.7% rise. This surge in prices, particularly in premium properties, is leading a real estate revival in the city.
However, this sharp rise in housing prices comes amid a cost of living crisis, with inflation and interest rates putting a squeeze on households. This juxtaposition of soaring property prices and economic constraints presents a complex challenge for policymakers and potential homeowners alike.
As Sydney grapples with this housing boom amid an economic squeeze, the question remains: how sustainable are these rising housing prices in the long run? Only time will tell.
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