Sydney’s median dwelling price has shot up by 99.4 per cent since 2009 to stand at $850,000, the latest CoreLogic data has revealed.
Not to be outdone, Melbourne’s price growth trails slightly behind, growing by 85 per cent to come in at $640,000.
It’s no secret the two cities have enjoyed spectacular price growth in recent years, but while concerns over housing affordability persist, prices show no signs of abating.
Last year alone, the median house price in Sydney jumped 16 per cent, according to CoreLogic’s data, making it the fastest growth since investment levels surged in September 2015.
Melbourne again showed comparable growth, posing a rise of 11.8 per cent over the same period.
Elsewhere, median dwelling growth was not as strong but was steady nonetheless.
ING head of Treasury Michael Witts told nestegg.com.au that house prices in the Australia’s largest two cities will continue to strengthen.
“The house market is driven by a whole range of dynamics and I think that market will continue to be well supported,” Mr Witts said.
“We’ve had double digit price increases for the last three or four years now so I think we’ll see a period now where price growth is less than double digit and that may involve some plateauing.”
However, that strong demand for housing means that those looking to get into the market will be unlikely to see much relief.
“I think there have been a number of people, particularly first home buyers that have been shut out of the market so any decrease in the market will probably be fairly well supported by that sector of the market,” Mr Witts said.
“If there’s been abnormally strong price increase in particular areas of the market, that’s most probably been driven by one-off factors, you could well see those prices become more normalised.”