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Sydney property now $48,390 more expensive

Australian property prices grew 1.2 per cent in May.

Australian money. Property for sale sign. Australian property market concept.
Australian property prices have risen for the third month in a row. (Source: Getty)

The property market is well and truly bouncing back, with Sydney continuing to lead the recovery.

CoreLogic’s latest Home Value Index rose by 1.2 per cent in May, the third monthly growth in a row and the highest recorded since November 2021.

The median property price across Australia is now $715,092. Sydney continues to be the most expensive capital at $1,052,810, followed by Melbourne at $755,871, and Brisbane at $713,939.

CoreLogic research director Tim Lawless said the positive growth was a result of persistently low levels of housing supply coupled with rising demand.

There were roughly 1,800 fewer capital-city homes advertised for sale in May compared to April, with inventory levels 15.3 per cent lower than this time last year.

“With such a short supply of available housing stock, buyers are becoming more competitive, and there’s an element of FOMO creeping into the market,” Lawless said.

“Amid increased competition, auction clearance rates have trended higher, holding at 70 per cent or above over the past three weeks. For private treaty sales, homes are selling faster and with less vendor discounting.”

Where are property prices rising the most?

Sydney is leading the property bounce back, posting a 1.9 per cent lift in prices. Home values have now risen by 4.8 per cent - equivalent to a $48,390 increase - since the trough in January.

Sydney’s premium housing markets are dominating the recovery trend, gaining 5.6 per cent over the past three months compared to a 2.6 per cent increase for more affordable markets.

“Buyers targeting the premium sector of the market are still buying at well below peak prices,” Lawless said.

“Although values across more expensive homes are rising more rapidly, at the end of May, dwelling values across Sydney’s upper quartile remained 11.8 per cent below the January 2022 peak. This is equivalent to a saving of around $213,000 from the cyclical high.”

Brisbane and Perth recorded the next highest gains, up 1.4 per cent and 1.3 per cent, respectively, while all other capital cities also recorded growth, month on month.

Regional housing values have also picked up, with combined values rising 0.5 per cent during the month.

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