According to CoreLogic residential property accounts for more than half of all household wealth – not surprising when you consider Sydney alone has had 16.2 year on year growth in values with a median dwelling price now over $770,000 – this includes units.
Low interest rates account for most of the stimulus while investors for the first time on record now surpass home buyers. There is some concern that Chinese investors looking for alternatives to their local share market may flood the Australian property market.
National figures show that detached housing are clearly outperforming apartments over the financial year. Over the financial year, house values were 10.4 per cent higher across the combined capitals index while unit values increased by a much lower 5.6 per cent.
The outlook is for continued growth in the Sydney market.