The Sydney property boom is over: Domain

houseProperty prices in Sydney are tipped to ease after recording a significant fall in the quarter ending December 2015, according to Domain’s House Price Report.

Sydney’s median house price fell by 3.1 per cent during the final three months of the year, which is the first fall in prices the city has seen since June 2012 and the sharpest quarterly decline in house prices reported on record.

Sydney’s median unit price also fell over the December quarter, by 2.8 per cent to $656,000.

“The remarkable Sydney boom we’ve seen over the last three years is now clearly over, with the market unlikely to record any notable house prices growth until at least spring. While the median house price still remains above $1 million (at $1,013,258), if current trends continue it will likely fall below this benchmark by mid-year,” said Domain Senior Economist, Dr Andrew Wilson.

However, while Sydney seems to be seeing drastic falls, Melbourne is on the rise. Melbourne’s median house price rose by 1.8 per cent to $719,000 in the December 2015 quarter, and the unit market also soared with the median unit price up 1.3 per cent to $446,000.

“It’s good news for Melbourne home owners, with the city recording its highest annual growth since 2009. While quarterly growth rates have weakened sharply, the end-of-year results remained positive as local supply and demand drivers remain robust. Melbourne recorded a median house price of $719,486 over the quarter to remain the second highest priced capital city housing market, behind Sydney,” said Dr Wilson.

Most other Australian capital cities recorded moderate to strong property growth in the December quarter, expect Perth and Darwin where property prices fell.

Results for the rest of the capital cities from the Domain report:

Canberra (Australia’s best performing capital city in the December quarter)

  • Median house price up 4.3 per cent to $652,000
  • Median unit price up 0.8 per cent to $405,000

Hobart

  • Median house price up 7.9 per cent to $360,000
  • Median unit price down 3.3 per cent to $268,000

Adelaide

  • Median house price up 1.8 per cent to $494,000
  • Median unit price up 3 per cent to $310,000

Brisbane

  • Median house price increased 1.5 per cent to $511,000
  • Median unit price decreased 1.1 per cent to $360,000

Perth

  • Median house price down 0.8 per cent to $585,000
  • Median unit price up 1.5 per cent to $389,000

Darwin

  • Median house price down 2 per cent to $637,000
  • Median unit price down 0.4 per cent to $407,000