Dwelling prices in Sydney are on the rise again

First time in two years

Aerial view of The Rocks historic district in Sydney CBD. Taras Vyshnya/Shutterstock

Residential property prices in Sydney increased in June, marking a turnaround in the market for the first time in two years.

With a median dwelling price of AUD777,693 (USD543,700), the New South Wales capital recorded an increase of 0.1 percent on the CoreLogic Hedonic Home Value Index in the month to June. This is the first monthly increase for home prices in the city since a peak in July 2017.

Lower mortgage rates after the federal election were partly successful for the stimulus, analysts noted.

“Importantly, the improving conditions through to mid-May were largely ‘organic’, predating the positive boost in sentiment following the federal election and interest rate cuts in early June,” CoreLogic head of research Tim Lawless said.

More: Prime Sydney homes hit new price high

While the “tide may have turned” for the housing market, market observers are not expecting a rapid recovery soon, he added.

On a quarterly basis, Sydney prices registered a negative growth of 1.1 percent in the second quarter; prices were down 9.9 percent annually.

Nevertheless, Sydney recorded a preliminary clearance rate of 72 percent from 503 auctions over the weekend, the strongest in Australia.

Apart from Sydney, Melbourne and Hobart also saw their dwelling values edge higher at 0.2 percent. Nationwide, dwelling values fell 0.2 percent, the smallest monthly decrease since March 2018.