Melbourne property boom continues

28/01/2010

The Australian property market posted a near five per cent rise (4.8 per cent) in median house prices nationally, with a 12.1 per cent rise overall for the year. Melbourne, having the strongest housing market in the country for the second consecutive quarter, recorded the highest annual growth rate of 18.5 per cent, forcing house prices past the $500,000 barrier
for the first time.

Sydney’s market, the biggest in the country, also performed well as house prices rose by exactly the national average of 12.1 per cent, following the third consecutive quarter of growth.

Although first home buyer demand sustained the market in the early part of the year, ultimately it was upgraders and investors that drove the extraordinary overall result for 2009, as activity in the more expensive suburbs benefited from the surprisingly resilient jobs market experienced in late 2009 and a strongly rising share market.

“The price growth seen in the more expensive suburbs in 2009 has largely been a recovery of the price falls that have occurred since late 2007 and early 2008. This top-end recovery has been completed in most capitals with median house prices surpassing pre-GFC highs for the first time in the December quarter in Sydney, Brisbane, Adelaide and Perth,” said Matthew Bell, Economist for Australia Property Monitors.

Source: APM