Sydney’s median house price decreased by 1.9 per cent to $1,167,516 over the September quarter; the steepest decline in house prices of the state’s capital cities. It was the first quarterly fall in the local market since December 2015, said Domain chief economist, Dr Andrew Wilson. “The drop in Sydney’s house prices over the September quarter reflects the diminishing impact of the record-low interest rates that have fuelled market recently. “While Sydney’s property market has been the star performer nationally – with prices essentially doubling over the last five years – affordability barriers are now acting to slow down demand and moderate price increases.
“The significant decrease in investor activity, as well as tightened lending restrictions for residential investors, has had a clear impact on the Sydney market. “We saw a similar house price dip in 2015, when similar policies were introduced.” Despite recording a decline in both house and unit prices, Sydney clearly remains the highest priced of all capitals, well ahead of the next-highest, Melbourne, Dr Andrew Wilson noted. Sydney unit prices also dropped – by 0.8 per cent over the quarter to $732,321, but despite the decrease, remain 4.5 per cent higher than the same time last year.
Median house rents in the Harbour city remained steady at $550 per week, as did median unit rents.