Sydney property market stays hot, even in the heart of winter
Sydney has outstripped every other capital city in the country to record impressive residential property price growth in the June quarter.
According to the latest Australian Bureau of Statistics Residential Property Price Index (RPPI), the weighted average price of residential property in the New South Wales capital increased by a whopping 3.1 per cent over the three months leading up to June.
That's in comparison to the national capital city average of 1.8 per cent - a figure that was largely held up by the continued popularity of Sydney property.
Other capitals to see strong growth during the June Quarter included Melbourne, Brisbane and Adelaide, although none of them exceed the 2 per cent threshold. Canberra, Darwin and Hobart all saw growth of less than 1 per cent, while Perth recorded a decrease in property prices of 0.2 per cent.
"The increase in prices has contributed to the increase in the total value of residential dwellings to $5.2 trillion in the June quarter 2014, an increase of almost half a trillion dollars since June 2013," said ABS Director of RPPI Robin Ashburn.
"The mean price of dwellings in Australia is now $554,800, an increase of $45,000 over the year, this is more than twice the increase over the year to June 2013."
Is the Sydney property market in a bubble?
With property prices continuing to climb in Sydney, some commentators may begin to suggest the presence of a 'bubble' - an environment of unsustainable growth that often proceeds a crash.
However, the truth is that Sydney is well positioned to maintain its reputation as an excellent property investment opportunity.
While it's unlikely that we will see a return to the mammoth growth recorded during the 2013/2014 Financial Year, conditions look ripe for a more gentle tapering off of the market, as opposed to a volatile and sudden drop in prices.
A Fairfax Media survey of 25 leading Australian economists released in July has revealed that while many agree the market may be overvalued, few believe we're in store for a crash.
For more information on the local market and the state of Sydney investment property, consider getting in touch with a buyers agent who can talk you through your options and act on your behalf to find the right property for your needs.