SYDNEY (BLOOMBERG) - Housing prices in Sydney soared to an all-time high, gaining 5.7 per cent since last year's low in October as the economy continues to recover.
Sydney property values are now higher than the prior peak in 2017, CoreLogic data released on Thursday (March 11) showed. However, Melbourne remains 1.3 per cent below its pre-pandemic high and Perth is almost 17 per cent below the top of 2014.
"The fresh record high is great news for Sydney home owners, but highlights the challenges for non-home owners looking to participate in the housing market as values rise faster than incomes," said Tim Lawless, CoreLogic's executive research director.
The rapid gains have been fueled by record-low borrowing rates, an improving economic outlook, an under-supply of listings and government incentives. While house prices are also surging from Singapore to Canada and the US, a return to boom times in Australia threatens to swell an already worrisome pile of household debt and make it harder for young people to buy their first property.