Sydney house prices lift in May but supply issues holding back national recovery: Residex

Sydney was the strongest-performing major capital city housing market over the month of May, registering a nearly 2% rise in house prices to a median of $675,500, according to Residex. The Sydney market is in positive territory for the year ending May 2012, with growth of 1.2%.

The Sydney unit market registered a quarter percentage point fall in May, with prices up 1% for the year ending May 2012 to a median of $488,500. Sydney unit prices were up more than 5% for the year to May 2011.

Melbourne house prices were flat during May (to a median $558,500), while unit prices rose 1.5%.

Outside of the major capital cities, Darwin was the strongest housing market over May with a 3% gain to a median dwelling price of $504,500. The NT capital also registered the biggest jump in activity, with sales up 32% over the year to May period compared with the previous corresponding period.

Noticeably, Perth unit prices have made strong gains over the three months to May, up nearly 8% to a median of $412,000.

Overall Residex calculated a 1% rise in national house prices over May to a median of $429,500, with units unchanged at a median of $394,000.

Residex CEO John Edwards described the Australia-wide May results as pleasing, saying the trend shows that “markets have clearly moved to the positive and adjustments are now occurring at a lower rate”.

“The unit market does not appear as robust and supply issues are impacting on its recovery. Looking a little deeper, the result we are seeing is largely a consequence of the largest markets (Sydney and Melbourne) producing reasonable outcomes,” Edwards says.

Here’s a guide to how capital city houses and unit prices have fared:

Sydney

• House prices rose 1.92% over May to a median of $675,500. They are up 2.74% for the quarter.
• Unit prices fell 0.25% over May to a median of $488,500. They are up 1.1% for the quarter.

Melbourne

• House prices fell 0.08% over May to a median of $558,500. They are down 0.05% for the quarter.
• Unit prices rose 1.48% over May to a median of $435,000. They are up 2.58% for the quarter.

Brisbane

• House prices fell 0.3% over May to a median of $422,500. They are up 0.07% for the quarter.
• Unit prices were unchanged over May with a median value of $348,500. They are up 0.54% for the quarter.

Perth

• House prices fell 1.81% over May to a median of $475,500. They are down 0.66% for the quarter.
• Unit prices rose 2.47% over May to a median of $412,000. They are up 7.75% for the quarter.

Adelaide

• House prices fell 0.16% over May to a median of $389,500. They are up 0.49% for the quarter.
• Unit prices rose 1.47% over May to a median of $308,500. They are up 3.05% for the quarter.

Hobart

• House prices fell 0.96% over May to a median of $364,000. They are down 4.02% for the quarter.
• Unit prices fell 1.02% over May to a median of $257,500. They are down 0.9% for the quarter.

ACT

• House prices fell 1.35% over May to a median of $525,500. They are down 1.3% for the quarter.
• Unit prices rose 2.05% over May to a median of $427,500. They are up 3.39% for the quarter.

Darwin

• House prices rose 3.14% over May to a median of $504,500. They are up 5.08% for the quarter.
• Unit prices fell 0.66% over May to a median of $410,500. They are up 4.37% for the quarter.

This article first appeared on Property Observer.