News and Media

Canberra closing in on Sydney median prices

Canberra house prices are on the rise. In fact new data shows the Nation's Capital is within cooee of again matching Sydney's median house price.

Canberra's $490,000 dwelling median price is within 2% or $10,000 of Sydney's $500,000 median, according to the latest RP Data-Rismark index.

The gap for houses is $12,625, with Sydney's house median at $561,625 and Canberra's house median at $549,000.

Canberra houses were up 3.8% over the year to July 2011, with Sydney house values easing 0.6%.

The gap for units is slightly wider at $38,500 with Sydney's unit median at $458,500 and Canberra's unit median at $420,000.

Sydney unit values were up 2.5% over the year to July but Canberra's median unit value eased 5.9%.

RP Data national research director Tim Lawless says the gap between Sydney and Canberra median dwelling prices was on a consistent narrowing trend between June 2000 and January 2009.

'During this time the price gap narrowed from a peak of about 60% in June 2000 to January 2009 when the median prices were equal to each other.

'Since that time median prices across the two cities have remained fairly level,' he says.

Mr Lawless believes the reasons are likely to be varied.

'Household incomes in Canberra are some of the highest in the nation and rental rates are also quite high.

'In July the average house rent was $524 a week compared with Sydney's $549 a week, which encourages more people to own.

'And land supply remains very tight which is another driver of higher home prices,' says Mr Lawless.

Canberra's average equivalised disposable weekly household income was put at $1,101 in ABS data released recently, which was 30% above the national average. Sydney's was just 1% above the national $848 weekly average.

Reproduced in full with permission: Property Observer 'Canberra closing in on Sydney median prices', Jonathan Chancellor, 5 September 2011.

Attention: This article is intended to provide general information only. Every attempt has been made to ensure the accuracy of this information at the date of publication. The opinions expressed in this article do not reflect those of DHA, its staff or agents. Prospective investors should seek independent advice. Property prices and rental growth are subject to market fluctuation. DHA will not be liable for any loss, damage, cost or expenses incurred or arising by reason of any person relying on information in this article.