Big cities drive huge rises in house values, while sales surge
HOUSE values in the capital cities have hit their highest since 2009, driven by rising prices in Sydney and Melbourne.
Sydney’s median house values rose 2.5 per cent last month while Melbourne’s gained 2.4 per cent.
House values fell in every other major city except Adelaide last month, meaning aggregate capital city home prices rose by 1.6 per cent, RP Data Rismark figures show. ‘‘We haven’t seen market conditions this strong since april 2009 for Sydney and May 2010 for Melbourne, RP Data analyst Tim Lawless said. Annualised capital gains of 20 per cent in Sydney and Melbourne would be a concern if this continued into next year, Mr Lawless said.
‘‘It would have the potential to push home values above what might be considered sustainable market value,’’ he said.
HIA data shows new home sales rose 3.4 per cent in August.